France reviews air taxes: what increases are proposed for UK and US flights?
Airlines say rises would have to be passed on to passengers, especially on long-haul flights
The tax increase would affect all airlines flying from France, including to the US
Ronen Fefer/Shutterstock
Flight prices from France are at risk of rising sharply after the government announced plans to increase airline taxes in a bid to reduce its huge public debt.
It plans to triple the so-called solidarity tax (TSBA) - which currently brings in €460 million – in the 2025 budget, which will have a “major impact” on passenger fares, according to financial daily Les Echos.
This would mean the current tax of €7.51 per passenger for economy class tickets for trips over 5,000km, for example, between France and the US, would rise to €60. The current tax of €63.07 for business class tickets on flights over 5,000km would rise to €200.
Taxes on flights of 1,000 - 5,000km, which would affect Nice to the UK, for example, would rise to €42 for economy class tickets and €100 for business class tickets.
The solidarity tax was introduced in 2006 by President Jaques Chirac. It is one of 10 taxes levied on air travel in France that together make up around 40% of the price of a ticket.
The rises are one of a raft of measures expected to be included in the budget, which is set to include €40 billion in spending cuts and €20 billion in tax rises.
Read more: Proposed tax rises on well-off in France: who is deemed wealthy?
Cost passed on to passengers
Airlines and airlines associations immediately criticised the plan, warning travellers would feel the effect of any such tax rise.
“The airlines are not in a position to absorb such a tax shock so we are going to have to pass this on in ticket prices,” said Pascal de Izaguirre, also CEO of Corsair.
Air France CEO Anne Rigail said if implemented, the new tax would be a “real shock to the sector”. She said the more prices rose, the more difficult it would be for airlines to finance decarbonisation.
The tax would not only affect French airlines, but all flights departing from France.
“If these tax plans are implemented, it will be a disaster for France’, said Willie Walsh, Director of the International Air Transport Association (IATA). He said “this proposal smacks of panic and lack of concerted thought” and would compromise France’s ambition of attracting 100 million tourists.
How much is the new proposed tax?
The new suggested taxes would be split depending on the length of the flight and would affect medium and long-haul distances.
0-1,000km (and overseas France) - Not decided
1,000 - 5,000km - €42 (economy class), €100 (business class)
5,000km+ - €60 (economy class), €200 (business class), €3,000 (private jet)
The new taxes would mark a steep increase from the current €7.51 per passenger for economy class tickets and €63.07 for business class tickets on flights over 5,000km.
Most US destinations would fall under the biggest tax rise, at over 5,000km. For example, Paris to New York is over 5,800km.
Many flights between France and the UK would fall within the 1,000-5,000km category, such as Nice to London, which is just over 1,000km.
Are the rises definite?
For now, the tax rise is a proposal. It will be officially announced as part of the 2025 budget, which is set to be presented on Thursday, October 10.
The budget will then be debated in the National Assembly and Senate and needs to be approved by both.
