Air tax hike: what impact will it have on travellers' budgets?

By 2025, the rise in solidarity tax on airline tickets, resulting from the adoption of the France's budgetThe new tax will increase the cost of air travel. This tax, tripled by the 2025 budget, is intended to bring in a billion euros for public finances. However, this new tax is causing concern among airlines, who fear that the extra cost will deter travelers. As a result, passengers' out-of-pocket expenses will potentially increase, complicating the travelers' budget.

The recent rejection of two motions of censure concerning the French budget for 2025 has sealed the adoption of a significant increase in the solidarity tax on airline tickets (TSBA), more commonly known as air tax. This measure implies an increased burden for travellers, who will see their travel budgets rise significantly from March 1. But how do these taxes actually affect passengers? Let's find out.

Legislative and economic context

The Finance Bill for 2025 provides for a threefold increase in the solidarity tax on airline tickets, commonly referred to as the Chirac tax. The measure is intended to make a significant contribution to restoring France's public finances, bringing in almost a billion euros for the state coffers. Despite intense opposition from the airline industry, the tax increase was supported by the Barnier government. The decision remains controversial, as no detailed prior economic impact has been provided, raising concerns not only among airlines but also among frequent flyers.

For more information, visit our article on new Senate measures.

Impact on airfares

With the application of this new tax, the price of airline tickets will increase significantly. For passengers, this means adjusting their travel budgets, perhaps considering fewer trips or shorter stays to compensate for the extra burden. The travel industry, already weakened by the pandemic, could see a drop in demand for air tickets due to this fiscal pressure. Airlines such as Emirates have already anticipated this increase by immediately applying it to ticket prices, as reported by this article.

Impact on the airline industry

Faced with an increase in taxes, several aviation players, such as Ryanair, are warning of potentially disastrous consequences for the French economy, as this could discourage air traffic to and from France. As a result, more airlines might prefer to fly to other, less taxed markets, which would reduce the attractiveness of certain French destinations for tourism and business. To better understand this position, consult our detailed article.

Details of exemptions

It is important to note that, despite this increase, travellers to Corsica and French overseas territories will benefit from an exemption. This decision is designed to avoid further penalizing these regions, where air transport is often the main means of travel. For the rest of France, however, travelers will need to factor this increase into their budgets now. Details of this exemption can be found in our dedicated section.

Implications for airline selection

Will airlines be able to absorb this increase to maintain their competitiveness, or will they be forced to pass these costs on to consumers? This remains an open question. Some airlines may try to offset the increase by reducing other costs or optimizing their operations. Others, depending on their market positioning, may simply revise their fares upwards.

Trade unions in Germany, in particular, have expressed their concerns about the challenges of competitiveness outside Europe and airport taxes. Further details are available in our article on this topic.

Impact of the air tax hike on travelers' budgets

Aspect	Impact
Ticket cost	Price increase
Travel frequency	Potential reduction
Long-haul destinations	More significant impact
Family travel	Higher family budget
Business travel	Readjustment of company budgets
Vacations abroad	Choice of more local destinations
Travel classes	Upgrades from business to economy class
Low-cost airlines	Price adjustments
Impact on the economy	Impact on tourism
Airline support	New financial challenges

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