Bundestag lowers air travel tax from july

The Bundestag passed a reduction of the air travel tax in the evening. Lower rates from before May 2024 will apply starting July 1.

The German Bundestag passed a law change introduced by the Union and SPD parties. In addition to the coalition factions, the AfD also voted in favor, while the Greens and Left opposed the plan. The tax on flight tickets falls by amounts between 2.50 and 11.40 euros depending on the route.

For short-haul flights up to 2,500 kilometers, the rate will be 13.03 euros instead of 15.53 euros. Medium-haul routes between 2,500 and 6,000 kilometers will cost 33.01 euros instead of 39.34 euros. Long-haul flights will be taxed at 59.43 euros instead of 70.83 euros.

The measure fulfills a promise from the coalition agreement. The state will lose 185 million euros in revenue this year. By 2030 the annual shortfall rises to 355 million euros. Whether airlines will pass the savings on to customers remains uncertain.

Before the new rules can take effect, the Bundesrat still needs to approve them.

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German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

Indonesia's government has capped domestic flight ticket price increases at 9 to 13 percent amid rising jet fuel costs. The measure provides government-borne VAT relief for economy class tickets. It applies for 60 days to protect consumer purchasing power.

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Due to the war between the USA, Israel, and Iran, tens of thousands of travelers are stranded in the Middle East. The German government is organizing return flights, but affected individuals may have to contribute to the costs. Travel operators like Tui and Dertour promise to cover these costs if their customers use the flights.

Sepp Müller, deputy leader of the Union parliamentary group, deems comprehensive subsidies against high fuel prices unrealistic. Eastern German CDU state premiers demand suspension of the CO₂ tax. Care associations warn of impacts on rural patient care.

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Amid ongoing disruptions from the Middle East war that began February 28, 2026—including over 37,000 flight cancellations and airline recoveries—French travel bookings have plummeted and airfares risen due to oil price surges. Agencies urge suspending trips to nine Persian Gulf nations until March 31, while Air France and KLM impose 50-euro long-haul surcharges.

The Civil Aviation Authority of the Philippines (CAAP) will cut aeronautical fees and passenger service charges at its managed airports starting April 1 to mitigate rising fuel prices. The reductions follow directives from President Ferdinand Marcos Jr. and Transportation Secretary Giovanni Lopez. Rates vary by airport class and travel type.

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German Finance Minister Lars Klingbeil (SPD) detailed specific savings targets for the 2027 federal budget at a press conference in Berlin. The measures aim to close a 111 billion euro financing gap. The largest cuts target pensions at four billion euros.

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