France has decided to significantly increase the so-called "solidarity tax on airline tickets" (Taxe de Solidarité sur les Billets d'Avion, TSBA), sparking renewed controversy in the aviation industry. The draft finance law for 2025, adopted by the National Assembly and the Senate at the end of January 2025, includes significant increases to this tax, which was first introduced in 2006 and expanded to an eco-tax on airline tickets in 2020. The decision to drastically increase the tax from March 1, 2025 not only sparks discontent in the industry, but also poses potential risks to the competitiveness of French aviation and tourism.
The TSBA has been a controversial issue in French aviation policy for years. For short-haul flights within France or Europe, the tax for economy class tickets will rise from 2,63 euros to 7,40 euros. Business class tickets will be charged 30 euros in the future. Long-haul flights will be subject to a tax of 15 to 40 euros, with first class and business class flights being charged up to 120 euros. The business aviation sector is particularly badly affected, where tax increases of up to 2.100 euros are expected for long-haul flights.
The increasing tax burden is primarily intended to provide the French government with additional revenue. The TSBA was originally introduced to finance projects to develop more environmentally friendly transport options. However, critics accuse the government of implementing the tax increases without sufficient studies and without considering the economic impact on the aviation industry. The aviation sector in particular fears that this could weaken the competitiveness of French airlines in international competition.
criticism from the aviation industry
The reaction from the industry to the tax increase has been overwhelmingly negative. Anne Rigail, CEO of Air France, said that the tax increase would cost the group around 100 million euros - a significant sum for a company that is still struggling with the aftermath of the coronavirus pandemic while having to make massive investments in the decarbonization of air transport. Rigail warned that the increase in the TSBA would primarily disadvantage French airlines compared to their European competitors and could even lead to a decline in international passengers who are considering France as a destination.
The European Business Aviation Association (EBAA) has also sharply criticized the tax increases. The EBAA describes the planned increases as "excessive and unfair" and announced that it will take legal action against the measure. Smaller airlines and business aviation service providers are particularly hard hit, as the new tax burden could threaten their very existence. In the past, Ryanair had already announced that it would reduce capacity at French regional airports by 50 percent if the tax increase were implemented as planned. This would not only lead to job losses, but would also affect French air traffic in rural regions.
Lack of economic study and the impact on small businesses
A key accusation from trade unions and associations is that the tax increase was decided without a thorough economic study. The Fédération Nationale de l'Aviation et de ses Métiers (FNAM) criticizes the fact that the draft law was passed without prior examination of the impact on the market and the competitiveness of the industry. In particular, business aviation, which is heavily dependent on French medium-sized providers, would not be able to cope with the additional costs, which could lead to job losses and a decline in competitiveness.
Pascal de Izaguirre, president of FNAM, explained that the tax increase will increase the cost of territorial continuity (i.e. air connections to less populated areas), which in turn will damage the competitiveness of the industry. De Izaguirre also warned that this increase has the potential to affect the ability of airlines to invest in the modernization and decarbonization of their fleets. This could have a negative impact on the entire French aviation industry.
Political uncertainty and the adoption of the law
The adoption of the finance law was marked by political uncertainties caused by the French parliamentary elections in July 2024. These led to a new government formation, delaying the timing of the adoption of the law. The draft law was originally scheduled to be adopted by December 31, 2024, but after months of debate, the law was not finally adopted until early February 2025.
Another aspect that caused uncertainty in the industry was the difficulty in communicating the exact details of the tax increase. While the amount of the tax increase was set out in the draft bill, there was uncertainty about how exactly the tax increase would be implemented and collected from the airlines.
The increase in the TSBA is a further step in the French government's efforts to generate additional revenue and secure funding for public projects. However, for the aviation industry, the measure represents a serious burden, leading not only to rising ticket prices but also having the potential to reduce the competitiveness of French airlines on international markets. The tax increase is likely to have a particularly serious impact on small airlines and business aviation.
Given the existing challenges, it will be crucial for the French government to find a balance between fiscal objectives and the needs of the aviation industry in order to maintain a healthy competitive landscape in the long term.
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