How do government taxes paralyze the aviation industry in Germany
The tourism industry in Germany is thriving, but the aviation sector in the country is struggling to keep up with the rest of Europe. Despite the crowded scenes during the summer travel season at major airports like Berlin, Frankfurt, Hamburg, Cologne-Bonn, and Munich, the number of travelers at German airports is still far below pre-pandemic levels. In contrast, most European countries have already surpassed 2019 figures with significantly increased demand. According to Jens Bischof, president of the German Air Transport Association (BDL), "Germany is lagging behind while the rest of Europe is experiencing a boom in aviation."
The number of passengers in Germany increased by only 2.8% in the first half of 2025, reaching 99.4 million travelers, a modest increase compared to a rise of 4.5% in the rest of Europe. The union attributes this stagnation mainly to the high costs imposed by the government, including the air travel tax on all flights to and from German airports, as well as air traffic control and security fees. These fees amounted to about 4.4 billion euros in 2025, an increase of 1.1 billion euros from the previous year. In contrast, countries like Spain and Turkey have much lower fees, making them more attractive to airlines.
The German Air Transport Association warns that these high costs are driving foreign airlines to focus on more profitable markets, leaving Germany with less air connectivity and weaker competitiveness. Beischof sees the solution as simple: abolishing the air travel tax or halving other fees. He emphasizes that this would stimulate economic growth without the need for direct government support. However, despite the ruling coalition's agreement to strengthen the aviation sector, no concrete steps have been proposed so far. Airlines are already operating on very tight profit margins, making many routes, especially from medium and small airports, economically unviable.
Low-cost airlines like Ryanair and EasyJet have significantly reduced their presence in Germany, with the number of stationed aircraft dropping from 190 in 2019 to 130 in 2025. This withdrawal has resulted in the loss of over 10,000 jobs and a loss of more than 4 billion euros in added value. The number of domestic flights has also sharply declined, now accounting for less than 19% of the offerings in 2019. Routes connecting cities like Berlin and Stuttgart or Berlin and Cologne-Bonn have been abandoned, while areas like Friedrichshafen are left with limited air services despite their strong economic activity.
Despite the challenges facing the aviation sector, the tourism sector in Germany is experiencing significant growth. The Federal Statistical Office announced a record of 223.3 million overnight stays in the first half of 2025, largely driven by domestic travel. Although there was a slight decline in the number of foreign visitors, partly attributed to the absence of major events such as the UEFA European Championship hosted by the country last year, Germans are increasingly preferring to spend their holidays within their own country, which has mitigated the impact of the decline in aviation on tourism overall.