Emirates immediately applies the solidarity tax, in anticipation of the vote

Emiratesfollowing the example of Air France, anticipates the increase in the solidarity tax on airline tickets, provided for in the Finance Act 2025, and not yet voted. As of November 5, 2024As of January 1, 2025, the company will apply a surcharge to ticket sales for travel on or after this date. This move is intended to avoid potential losses if the tax were to be paid without having been levied. This advance has prompted reactions from travel operator representatives, and raises legal questions about its application before the law is passed.

Background and preamble

The airlines' anticipation of the increase in the solidarity tax on airline tickets took the industry by surprise. Last week, Air France had already chosen to incorporate this measure into its rates. Today, it is Emirates which follows suit, setting up a overload on tickets from November 5, 2024.

An anticipated surprise

Emirates is taking bold action even before the final vote on the 2025 Finance Act. According to the company increase in solidarity tax could result in significant financial losses if not anticipated. Hence the importance of preventive budgeting to minimize the impact, especially if the legislation is adopted in its current state.

A prudent financial strategy

From November 5, Emirates will apply the overload on all tickets sold for departures scheduled from January 1, 2025. The company points out that the amount is based on government proposals, and may be subject to revision at a later date.

Reactions and controversy

Air France's decision to anticipate this measure had aroused the ire of travel operators. The SETO (Syndicat des Entreprises du Tour operating) and Les Entreprises du Voyage had protested, calling for an immediate suspension of this unilateral initiative. Emirates' move may well intensify the debate within the industry.

Legal notices

According to lawyer Emmanuelle Llop, the Chirac tax, also known as the TSBA (solidarity tax on airline tickets)is collected by the companies on behalf of the State, and its increase is envisaged as part of this bill. Any application of this tax before it is passed raises the question of the legal timing and rights of companies to take such prerogatives.

A considerable economic impact

With tax revenues set to double to 460 million euros, the pressure on the air transport industry is palpable. IATA, for example, points to the disastrous economic consequences this increase could have, as outlined in the IATA link on the Chirac tax increase. The tax could not only affect airlines, but also have repercussions on the entire economy, as described in the article on the economic impact of the tax increase.

Comparison of Emirates' anticipation of the solidarity tax

Aspect	Emirates
Application	November 5, 2024
Travel date concerned	From January 1, 2025
Reason for early application	Minimizing financial impact
Non-anticipation risk	Significant losses
Tax calculation basis	Current government proposals
Type of tax	Solidarity tax and ecocontribution
Operator reaction	Critical zeal like at Air France
Consequences for travellers	Immediate surcharge on tickets
Legal reviews	Laws not yet passed, generally not applied

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