What's Happening?
The French aviation sector is experiencing significant challenges following the introduction of a new tax on air travel. The tax, which took effect in March 2025, has tripled the 'solidarity tax on airline
tickets' (TSBA), leading to increased costs for passengers and airlines. The Directorate General of Civil Aviation (DGAC) has reported that airlines have passed the full tax cost onto passengers, contributing to inflation in airfares. This has resulted in decreased traffic and profits, particularly affecting business aviation. The National Federation of Aviation and its Trades (FNAM) has criticized the tax, stating it harms the French aviation sector and diminishes France's appeal as a travel destination.
Why It's Important?
The tax is expected to generate €850 million annually, with most of the revenue allocated to the general state budget. However, the increased costs have led to a competitive disadvantage for French airports, threatening jobs and routes. The aviation sector is crucial for France's economy, which relies heavily on tourism and trade. The tax's impact on air travel costs could lead to a decline in passenger numbers and shift transit traffic to rival airports outside Europe. Environmental groups argue that passenger numbers are influenced more by changing attitudes and airline policies than by costs alone.
What's Next?
As France's lawmakers consider revisions to the 2026 budget, there is growing pressure from the aviation sector for changes to the tax policy. Without relief, the sector may face a period of decline, affecting France's tourism and trade industries. The DGAC and FNAM are likely to continue advocating for policy adjustments to mitigate the negative impacts of the tax.
Beyond the Headlines
The tax's impact on business aviation is particularly notable, with a significant decrease in demand reported by French operators. Foreign firms have experienced an increase in activity, highlighting the competitive disadvantage faced by French companies. The tax system has been labeled as unfair by EBAA France, the sector's leading association.
