Even years after the coronavirus pandemic, domestic air traffic in Germany has yet to fully recover. While international and tourist routes have in some cases even grown beyond pre-crisis levels, the domestic market is lagging behind. Structural problems, high government taxes, and a dwindling supply of flights are putting a strain on Germany as a business location.
More than five years after the start of the pandemic, domestic German air traffic remains in crisis. While international air connections, especially to tourist destinations, are recovering dynamically, services on domestic routes are stagnating. The decline in decentralized point-to-point connections is particularly severe. According to the German Aviation Association (BDL), these have reached only around 20 percent of the pre-crisis level of 2019.
While scheduled flights via the major hubs of Frankfurt and Munich are once again being offered on a larger scale, direct connections between smaller German cities have virtually disappeared. This development has noticeable consequences for the accessibility of many regions and, as companies increasingly complain, is making business travel more difficult.
Competitive disadvantage due to state taxes
The industry sees the burden of government-imposed costs as a key obstacle. The air traffic tax, security fees, and air traffic control fees in Germany are among the highest in Europe. This not only reduces the attractiveness of domestic air travel, but also that of Germany as a business location as a whole.
According to the BDL (German Airline Federation), the additional costs caused by government interventions will increase again by 2025 billion euros in 1,2. This will force airlines to reduce their services or abandon them entirely. The economic pressure particularly affects cost-sensitive low-cost carriers.
Withdrawal of international airlines
The consequences of these conditions are already clearly visible. The Irish airline Ryanair has announced that it will completely cease operations in several German cities, including Dortmund, Dresden, and Leipzig. Capacity will also be drastically reduced in Hamburg. Overall, this will reduce the number of available seats by almost two million per year.
Previously, other airlines such as EasyJet had already significantly reduced their presence in Germany. The British airline had built an extensive domestic route network from Berlin, but it proved uneconomical. Eurowings, a subsidiary of Lufthansa, also significantly reduced its domestic German offerings following the acquisition of parts of the former Air Berlin.
Demand for reform of the air transport tax
Given the tense situation, the BDL is calling for a reorientation of the air transport tax. Specifically, the association proposes levying the tax only once on domestic return flights. Currently, the tax is levied per flight segment, meaning that a single return flight is subject to double taxation – a rule that primarily disadvantages domestic flights.
According to BDL General Manager Joachim Lang, this is a first step toward correcting the distortion of competition and making domestic flights more economically attractive again. Political support has also been heard from the Bundestag: The CDU/CSU parliamentary group has submitted a motion calling for the repeal of the increased air transport tax and the review of other cost factors.
Rail transport as an incomplete alternative
Although air travel is increasingly being supplemented by cooperation with Deutsche Bahn – for example, via so-called AIRail connections, where trains run under flight numbers – Lang argues that rail is not a comprehensive alternative. Connections such as the Berlin-Munich route work well, but there are major shortcomings in the east-west direction. Trips from Berlin to Cologne or Düsseldorf, for example, are associated with long travel times. In these cases, travelers often resort to cars.
In addition, the BDL emphasizes that it is not about growth “for growth’s sake,” but about ensuring that Germany, as a business location, is sufficiently connected to national and international markets.
Germany as a location for aviation under pressure
Without substantial changes to the framework conditions, Germany's importance as an aviation hub is at risk of further decline. Relocation trends are already emerging: Airlines are shifting their services to neighboring countries, where lower cost structures and tax relief are available. Airports in the Netherlands, Poland, and Austria are increasingly benefiting from German passengers switching to alternatives closer to the border.
The German government announced initial relief measures in the coalition agreement, but industry representatives say these are insufficient at an average of three euros per passenger. Instead, they call for a comprehensive strategy to strengthen competitiveness and secure the national air transport infrastructure.
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