Travelers to France, prepare for a budget bump! Your flight tickets are poised to become pricier in 2024. This increase stems from a new tax introduced by the French government, targeting the aviation sector as part of a broader ecological transition plan.
The French government, in a bold move to advance its ecological agenda, has introduced a new tax impacting the aviation sector. This policy, announced in late 2023 and effective from 2024, specifically targets major airports in France.
French Airports Affected by New Carbon Tax
Under this new scheme, airports with an annual operating revenue exceeding 120 million euros and an average profitability of at least 10% over the past decade will be taxed. Dubbed the “Long-Distance Transport Infrastructure Tax,” it aims to encourage high-polluting entities to contribute more to ecological efforts. The government anticipates this tax to generate approximately 600 million euros annually from 2024.
This tax primarily affects five major French airports, including Paris-Charles-de-Gaulle (LFPG) and Nice-Côte d’Azur (LFMN). To counterbalance this financial strain, these airports will raise fees for airline companies. Consequently, airlines will transfer these additional expenses to passengers by hiking up the prices of flight tickets.
Impact on Airlines and Passengers
In response to the new taxation policy, Air France, when questioned by AFP in June 2023, emphasized that France is “the country that already taxes airlines the most.” The national airline is advocating for the utilization of the collected funds towards the “decarbonization of the sector,” highlighting a keen interest in aligning financial measures with environmental sustainability goals.
France’s aviation industry has historically been subject to various taxes and levies. These include taxes for civil aviation, airport security, noise pollution, and a solidarity tax, also known as the “Chirac tax.” However, the new tax introduces a significant additional financial obligation for major airports, indirectly impacting airline companies and passengers.
Anne Rigail, CEO of Air France, indicated in September 2023 that while immediate price hikes might not occur, a gradual increase in ticket prices over the coming years is inevitable to align with environmental transition goals.
Push for Environmental Accountability in Aviation
The aviation sector in France, like the rest of the world, has been recovering from the COVID-19 pandemic, with traffic estimates in 2023 nearing 90-95% of pre-pandemic levels according to the FNAM. This recovery period makes the timing of the new tax particularly impactful.
The introduction of this tax aligns with a broader global trend of increasing environmental accountability in the aviation sector. It reflects the industry’s gradual shift towards sustainable practices, although it raises questions about the balance between ecological commitments and economic pressures on both airlines and passengers.
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