An expensive proposal: bounty for premium passengers?

Eight countries, including France, Spain, and Kenya, have formed a "solidarity coalition" to introduce a tax on higher-class air travelers. The IATA sees an entire industry threatened. What do you think?

The United Nations may be diminishing in importance in times like these, but that doesn't mean it stops meeting in beautiful places. The United Nations International Conference on Financing for Development took place in Seville at the end of June, prompting Barbados, Benin, Sierra Leone, Somalia, and Antigua and Barbuda, along with France, Spain, and Kenya, to form an "Aviation Solidarity Coalition for Premium Airlines."

Supported by the European Commission and the Global Solidarity Levies Task Force (GSLTF), the coalition aims to raise funds for climate protection and sustainable development by introducing a tax on premium airlines, i.e., first- and business-class passengers, as well as on private jets. This idea, based on the controversial motto "Tax the Rich," originated with the GSLTF, an independent group of experts that makes recommendations for solidarity levies on sectors that contribute significantly to CO2 emissions. French President Emmanuel Macron therefore called on all conference participants: "We need those who have benefited from globalization to contribute more to financing. I urge all possible countries to join this international framework."

Those who find the idea of ​​squeezing a little extra money out of high-flyers radical should perhaps consider that just one percent of the world's population is responsible for more than half of commercial aviation's CO₂ emissions. At the same time, premium travel has grown significantly in recent years, with private aviation emissions increasing by 46 percent between 2019 and 2023. The aviation sector is responsible for over 2.5 percent of man-made CO₂ emissions and remains one of the fastest-growing greenhouse gas emitting sectors. However, jet fuel, especially for international flights, is mostly exempt from tariffs and taxes. In the G20 countries, the average jet fuel price in 2021 was €9 per ton of CO₂, compared to €79 for diesel and €68 for gasoline.

It's currently difficult to say how high such a tax on premium airlines would be, because every country that doesn't yet tax aviation fuel (e.g., Germany) would first have to consider such a tax. In addition, decisions would have to be made about tiered ticket taxes, frequent flyer fees, and the level of the levy on private jet fuel. All processes that take time. The GSLTF experts estimate only that a global levy on premium airlines could generate €78 billion annually. Billions that could be used to protect the climate and, above all, to compensate those who suffer most from the consequences of climate change.

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The response from the International Air Transport Association (IATA) was not long in coming. IATA Director General Willie Walsh called it a "gut punch" in the face of the industry's decarbonization efforts. "The aviation industry is an economic catalyst, not a cash cow." Walsh also questioned the validity of the GSLTF study, stating that "a competitive aviation industry does not generate excessive profits" and that the estimated value of a premium flight levy is "approximately three times the estimated global aviation industry profit of $32.4 billion in 2024."

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