Airlines are reducing flights despite tax cuts: planes are insufficient
The new air travel tax reduction in Germany may not benefit travelers, as the ongoing shortage of aircraft continues to drive ticket prices up across the country. Airlines have warned that the reduction may remain 'symbolic' only for passengers.
Gerald Wissel, the CEO of Airborne Consulting in Hamburg, said that airlines will save about 15–50 euros per ticket depending on the fare class, but dynamic pricing systems make it unlikely that these savings will appear on customer bills. He emphasized that the real problem is the shortage of aircraft, not airport fees.
Low-cost airlines like EasyJet and Ryanair have scaled back their networks in Germany due to a shortage of aircraft. For example, Ryanair will cancel 76 weekly flights in Berlin and remove 44 routes from Cologne, while EasyJet plans to increase capacity by only 2-4% in 2026, which is below the group's overall target.
The German government plans to restore the air travel tax to its levels before May 2024 starting from July 1, 2026. This reduction will provide between 3 to 13 euros per ticket depending on the distance, and it has been welcomed by the German Aviation Association (BDL) as a signal to end years of tax and fee increases.
However, the global aviation industry faces significant challenges. Data from the International Air Transport Association (IATA) indicates a backlog of 17,000 aircraft orders that have yet to be fulfilled, taking about 14 years to meet at current delivery rates. Aging fleets, a shortage of pilots, and high demand mean airlines are forced to prioritize the most profitable routes, making it unlikely that passengers in Germany will see immediate benefits from tax cuts.