Flight Prices to Rise Despite Tax Cuts Amid Energy Crisis, Warns Bundestag Chair
Economy / Finance

Flight Prices to Rise Despite Tax Cuts Amid Energy Crisis, Warns Bundestag Chair

Anja Karliczek, Chairwoman of the Bundestag’s Tourism Committee and a CDU member, stated that the planned reduction of the air traffic tax set to take effect on July 1st will not compensate for the continued increase in flight ticket prices caused by the energy crisis. Speaking to the “Rheinische Post” on Monday, Karliczek acknowledged that the travel sector is currently experiencing tough times and predicted that ticket prices will continue to rise, cautioning against any overoptimism regarding the current market state.

She explained that the scheduled tax reduction only provides an initial boost, aiming to prevent German airports and airlines from losing ground to foreign competition. For Karliczek, it is crucial that Germany maintains attractive transport hubs to accommodate tourists visiting the country. However, she argued that while high kerosene prices are a concern, they should not be viewed as a distorting competitive disadvantage specific to German airports. Instead, she characterized the rising costs as a general pricing phenomenon that all airlines must factor into their business models.