Ryanair urges government to abolish air travel tax in 2026 budget - Get updated on what's happening in tourism!

Ryanair, Europe’s No. 1 airline, today (Thursday, 24 July) called on the new coalition government to abolish Germany’s damaging air travel tax in the upcoming 2026 federal budget. While the government’s commitment to lowering the tax is a step in the right direction, Ryanair argues it is not enough to rescue Germany’s struggling aviation market, which remains at just 87% of its pre-COVID levels—well behind the rest of Europe.

According to Ryanair, the only way for Germany to fully recover lost passenger volumes is by eliminating the air travel tax—one of the highest in Europe—and reducing access charges, enabling Germany to compete with other EU countries such as Sweden, Hungary, and regional Italy, which have already abolished such taxes to stimulate aviation growth.

If the new government under Chancellor Merz abolishes the air travel tax and reduces air traffic control and security fees, Ryanair pledges to invest $3 billion in new aircraft, create over 1,000 new jobs, open new routes, and more than double its passenger traffic in Germany to 34 million per year.

However, if the government fails to eliminate the air travel tax and lower inflated access charges—contrary to the actions of more growth-oriented EU governments—airfares for German passengers and visitors will continue to rise, and Ryanair will further reduce its flight schedules in Germany.

Ryanair CEO Eddie Wilson stated:

“Germany’s aviation market is in freefall and will continue to lag behind the rest of Europe unless the new coalition government abolishes its damaging air travel tax in the 2026 budget. A partial reduction is welcome but falls far short. Germany must follow the example of other EU countries such as Sweden, Hungary, and regional Italy, which have scrapped these taxes to encourage growth.

If the air travel tax is abolished and access charges such as air traffic and security fees are reduced, Ryanair will invest $3 billion in new aircraft, create over 1,000 jobs, launch new routes, and more than double our German passenger numbers to 34 million annually.

But if the new government fails to seize this growth opportunity, Ryanair will have no choice but to continue reducing its operations in Germany. The country has become so unattractive that growth and investment are shifting to lower-cost, tax-relieving competitor states elsewhere in Europe.”

Image Credit: © AA