Details of new airline taxes revealed

With the passage in force of the 2025 budget, the increase in taxes on air transport has been ratified. Premium and intercontinental passengers will be hit hard...
New rates for the solidarity tax on airline tickets
The increase in the solidarity tax should have a particularly heavy impact on regional traffic, which is heavily dependent on low fares from low-cost airlines (Photo: Marseille-Luc Citrinot)

François Bayrou will have unleashed his first 49.3 on the 2025 budget on Monday 3 February in the National Assembly. With the rejection of two motions of censure tabled on 5 February, the France's 2025 budget has finally been adopted. It still has to go through the Senate, but it is unlikely that any major changes will be made. Notably in the adoption of the increase in the so-called solidarity air tax (TSBA).

From 1 March, this will represent an increase of at least €4.80 per passenger.. The tax is passed on to flights in Europe (including domestic flights) from €2.60 to €7.40 in economy class. For passengers in business classThis tax will now represent 30 euros. This rate was already included in the previous Barnier government's plan.

On the other routes, the government has maintained the rates envisaged by the Barnier government. In other words, economy class, a tax of 15 euros for an intermediate destination (such as North Africa) against 7.50 euros.

Above all, it will be multiplied by 5 to destinations beyond 5,500 km. The TSBA is being increased from €7.50 to €40.. In business or first class, the new rates outside Europe are set at 80 and 120 euros respectively..

In addition, the TSBA should remain at its current level for Corsica, destinations in the French overseas departments and territories and on regional development routes. That is 2.60 euros in economy class, and 20.27 euros in first or business class.

Business aviation, the victim of political atonement

Business aviation will be hit hardest. Depending on the type of aircraft used (propeller-driven or turbo-jet), thehe tax will rise to 210 or 420 euros on European destinations. For so-called intermediate destinations, the TSBA increases to 675 or 1,015 euros. Finally, for destinations beyond 5,500km, the 2025 version of the TSBA will cost each passenger 1,025 or 2,100 eurosdepending on the mode of propulsion.

EBAA France (European Business Aviation Association) condemns this difference depending on the type of aircraft. It calls for this distinction to be abolished, as it is not justified either in terms of use or in terms of carbon footprint. Instead, it is proposing that more relevant criteria be established, in particular passenger capacity.

The association adds that it cannot tolerate such an excessive and unfair tax increase compared to other aviation sectors. Such an increase, motivated mainly by political considerations, is neither economically nor ecologically justifiable. EBAA France points out that business aviation accounts for only 2% of emissions. of air traffic in France.

What is the real purpose of the TSBA?

Increase in TSBA must contribute to the State budget some 800 million euros. Its original purpose, to help developing countries, no longer has much to do with the use to which it is put. According to the official website of the Ministry of Regional Planning and Ecological Transition - which oversees civil aviation - the revenue from this tariff is collected for the benefit of :

  • From the historical beneficiary the Solidarity Fund for Development (FSD)up to a ceiling of 210 M€The aim is to give concrete form to France's participation in the financing of global public health programmes;
  • A second beneficiary from 2020: up to a maximum of 252 M€, the French Transport Infrastructure Funding Agency (AFITF)A public administrative body responsible for contributing to the financing of rail, road, port and river infrastructure projects and the development of public passenger transport projects in France.

The rest will go to the State to plug the deficit. However, it is not certain that these revenues will ultimately replenish the coffers as hoped.

Fewer flights for Ryanair with the increase in the TSBA (Photo: Beauvais- Luc Citrinot)

Likely negative consequences for French airlines and airports

The tax increase could result in the closure of overhead lines. In particular low-cost airlines in the regions. And so, Ryanair has once again announced that it intends to reduce its presence in France by 50% as a result of the tax increase. This threat would affect 10 airports.

"France is going against the tide". said Michael O'Leary, CEO of Ryanair, at a recent press conference in Lisbon. At the same time, the airline is expanding its Western European hub at Brussels South-Charleroi. It is opening four new destinations, bringing to 132 the number of routes offered this summer...

As for long-haul passengers, they could be even more inclined to choose flights operated by foreign airlines with stopovers. -to the detriment of direct routes operated by French carriers.

Hubs such as Istanbul (2,250 km from Paris), Doha (4,975 km) or Dubai (5,200 km from Paris) could benefit from this. As denounced a few days ago by Ben Smith, the boss of Air France-KLM. Whereas Thomas Juin, Chairman of the Union of French AirportsIn November last year, when the first draft of the tax was presented to the public, potential social break-up in French air transport. The consequences of the tax increase will soon be felt in terms of passenger demand...