" A plethora of challenges The annual congress of the National Federation of Aviation and its Trades (FNAM) provided an opportunity for its president, Pascal de Izaguirre, to address the numerous issues affecting the activity and competitiveness of French airlines. Decarbonisation, supply chain tensions for new aircraft, armed conflicts, soaring kerosene prices… Among this extensive list of grievances weighing on the aviation sector, one final point emerges: the "fiscal shock".
" The sharp increase in taxation has caused several disruptionsestimates Pascal de Izaguirre. In 2025, for example, traffic growth in France (+2.8%) was more than two points below the European average (5%). As a result, the French market slipped from fourth to sixth place, overtaken by Italy and Turkey ". Not to mention the French business aviation sector, which saw a 22% decline in passenger numbers in the first quarter of 2026.
" Between 2019 and 2025, the number of flights arriving in or departing from France fell by 2%, whilst the number of overflights rose by 15%. This shows that France is becoming a transit country rather than a destination ", added the president of FNAM and the company Corsair. For business travel, the consequences are direct: a reduction in flight options, increased reliance on foreign hubs, and growing uncertainty over travel costs.
Risk of downgrade
Faced with the risk of France being downgraded at a European and international level, as mentioned by Pascal de Izaguirre, the Minister of Transport, Philippe Tabarot, came to provide several answers: " I am a proponent of fiscal stability for the sector after several difficult years. We have achieved this for this year 2026, but it took a lot of fighting, particularly at the inter-ministerial level where there is not a unanimous understanding of the strategic importance of your sector and the impact of taxation on your businesses. We also succeeded in bringing into effect from 1er June a reduced rate of TSBA for spatial planning link-ups under a public service delegation. Some will think it's not enough, but it's a step in the right direction ".
And the Minister of Transport stressed the importance of aviation, " without which we could not satisfactorily connect some of our remote or landlocked territories ". " Similarly, it would be difficult to accommodate more than 100 million tourists a year in France, who account for nearly 8% of our GDP », he added. Not to mention the importance of the aeronautical industrial sector, « at once a job creator across the country and among the main contributors to France's trade balance, with a surplus of 33 billion euross »
The FNAM’s central argument – that increased taxation on air transport undermines the competitiveness of French airlines and damages France’s appeal – also comes against a backdrop of challenges for the sector as a whole. Due to the oil crisis linked to the closure of the Strait of Hormuz, the International Air Transport Association (IATA) expects airlines’ profits to be slashed by at least 50% in 2026. The conflict in the Middle East has indeed caused the price of kerosene to rise by nearly %, rising from 600 €/t to 1,500 €/t, before falling back to a level still 30 % higher than the pre-crisis price.
The situation in the Middle East has been the subject of all conversations, between interventions and panel discussions. First and foremost, to praise the good collaboration between all stakeholders – government, companies, energy suppliers – to avoid a jet fuel shortage and ensure a strategic summer period for companies after the turbulence they have experienced. No aircraft have been grounded for lack of fuel, which is quite remarkable.stressed the President of UFIP Energies et Mobilités, Philippe Casbas. The entire industry immediately mobilised for action. Refineries were switched to an operational mode that would allow them to cope and maximise kerosene production. ". " The stocks were also used and did their job ", added Philippe Casbas, referring to stocks at 60% – admittedly at their lowest level since 2020, but which are rising and leave enough room to see us through the summer period.
However, « Everyone can clearly see the situation remains very uncertain "noticed Pascal de Izaguirre. Within this framework, the FNAM insists on the need to anticipate different scenarios for the coming months in the event of new geopolitical shocks, notably involving an adjustment of the "use-it-or-lose-it" rule on time slots if flight cancellations were to occur after the summer.
When will there be a pathway for SAF?
More broadly, the recent period has shone an even brighter spotlight on the sector's dependence on the Gulf, both with regard to all these companies that have taken a key part in global air connectivity and benefit from state support to enhance their competitiveness, but also, of course, due to the region's key role in kerosene supply. Hence, the common conclusion from all stakeholders: the need to accelerate the advent of a sustainable aviation fuel (SAF) production sector in France and Europe, both to meet the requirements of incorporation mandates set by ReFuel EU and to break free from dependence on Middle Eastern oil. But... without falling into another dependence, that on SAFs. from China or the United States ", stressed the president of the FNAM.
This push for energy sovereignty, both at the French and European level, is therefore more than hoped for. When I think about our country’s strengths, with 95% of carbon-free electricity, I realise that we have a number of assets that could help foster the development of an industrial sector for SAF, estimates Florence Parly, Chair of the Board of Directors of Air France-KLM, and formerly Minister of the Armed Forces. The subject isn't about funding an entire sector with public money, but about kick-starting it with a minimum to allow it to exist. And we always come back to taxation. Given the taxation levied on air transport actors, we constantly advocate for a portion to be reallocated to contribute to it. If we do not move in this direction, we will have a problem in 2030. "
