Business & Economy

Flight costs from France to rise as government more than doubles air tax | France

Flight costs from France to rise as government more than doubles air tax | France


The cost of flights from France will rise next month when the government more than doubles its “solidarity tax” on tickets.

The French government has said the increases are fair on ecological and fiscal grounds but critics say it will hit France’s ability to compete globally.

Airlines are expected to pass the cost of the tax hike on to passengers but Air France has estimated it will cost the company about €100m (£83m) at a time when the airline is recovering from Covid losses. Ryanair has threatened to reduce flights to and from the country’s airports.

The measure is part of the 2025 budget bill aimed at reducing France’s spiralling deficit, which the prime minister, François Bayrou, forced through parliament without a vote.

The tax on an economy class short-haul flight within France or Europe will increase from €2.63 to €7.40 on flights departing from France.

The charge for an economy class medium-haul flight will rise to €15 and for long distance – more than 5,500km – to €40. The tax on business and first-class tickets also increases to €30 for short-haul, €80 for medium-haul and €120 for long-haul flights. Private jets will have their charges increased to between €220 and €2,100.

Flights to Corsica and France’s overseas territories are exempt from the tax increases.

Income from the new rates of “airline ticket solidarity tax”, also called the Chirac tax after the former president who introduced it in 2006 to fund international aid programmes, is expected to more than double to almost €1bn a year.

Amélie de Montchalin, the minister for public accounts, said: “It’s a measure of fiscal and ecological justice. Twenty per cent of the population with the highest income is responsible for more than half the money spent on air travel.”

Benjamin Smith, the director general of Air France-KLM, told Le Parisien last month that the tax increase was “irresponsible” and described it as “a tax to access France”.

He said: “France is the country where air transport is the most heavily taxed in Europe. For the last 20 years we have lost 1-2% of the market a year to foreign airlines. There is a risk of moving the benefit that our air travel generates to other countries.”

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Ryanair’s chief executive, Michael O’Leary, threatened to reduce his airline’s flights in France if the tax was increased.

At a press conference last week, O’Leary said: “France is already a high-tax country and if it increases already high taxes further, we will probably reduce our capacity [to and from France].

“France is going against the tide. Europe will not become more efficient or more competitive by over-taxing air fares.”

Article by:Source: Kim Willsher in Paris

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