Germany Plans Further Cuts to Air Traffic Tax

German Chancellor Friedrich Merz announced plans to further reduce the country's air traffic tax. He argued that high levies divert air traffic to foreign locations and need to be rectified.

German Chancellor Friedrich Merz attends a plenum session of the lower house of parliament, the Bundestag in Berlin, Germany, October 14, 2026. REUTERS/Fabrizio Bensch

Germany Chancellor Friedrich Merz plans further cuts to the national air traffic tax to curb the outflow of flight routes. The move follows a coalition decision that reversed a previous tax increase on July 1. Tax relief aims to retain local aviation business and prevent carriers from shifting operations to foreign airports.