Berlin – Good news for air travelers – even if it doesn’t start until 2026! The coalition wants to reduce aviation taxes on July 1 next year. Chancellor Friedrich Merz (69, CDU) spoke about around 350 million euros for the benefit of the German aviation industry.
But what is the impact on passengers?
Domestic and short-haul flights currently cost 15.53 euros per flight, 39.34 euros for medium-haul flights and 70.83 euros for further destinations. Now the tax should be reduced to 15 euros per ticket. The question is whether airlines will also pass on tax savings to air travelers.
The reduction not only impacts ticket prices, but also the offerings. BECAUSE: International airlines are increasingly placing their planes in locations with lower boarding costs – at the expense of German airports. The traffic light government last raised taxes in 2024. The industry has long called for a tax reduction.
Reiche to BILD: “Connections around the world”
Federal Minister of Economy Katherine Reiche (52, CDU) told BILD that the coalition agreement was a resounding success and was “basically necessary steps to make Germany competitive again.”
Economy Minister Katherina Reiche praised the coalition’s decision
Reducing the air traffic tax would bring “exciting connections around the world,” Reiche said. The government also wants to introduce industrial electricity pricing, build new gas-fired power plants and use German funds to encourage private investment. Overview:
Industrial electricity prices
▶︎ Lower, state-subsidized industrial electricity prices will be implemented from January 1, 2026 until 2028. Merz announced this at “Stahlsummit” a week ago. He talked about a price target of 5 cents per kilowatt hour.
The new prices should apply to electricity-intensive companies that compete internationally, such as the steel and chemical industries. This ensures “planning security and real assistance to our industry,” said Economic Minister Reiche.
New gas power plant
Later, they will act as a backup if electricity needs cannot be met by renewable energy because there is no sunlight and no wind blowing. There must be funding from the government so that investment in energy companies can bear fruit. The EU Commission still has to approve this. Here too, the coalition hopes for a green light soon.
German Fund
Several financing instruments provided for in the coalition agreement should be linked together to stimulate private investment – for example in the fields of energy, resilience or start-ups in the field of security policy.
This is also very important: Germany lags behind internationally when it comes to financing young and innovative companies.
