Sunday, August 31, 2025

IATA calls on Global Solidarity Levies Task Force to rethink aviation tax proposal

The International Air Transport Association (IATA) voiced deep disappointment at recommendations issued by the Global Solidarity Levies Task Force (GSLTF) to impose a new “premium flyer levy” on international air travel.

The task force claims the levy would raise to €78 billion (US$90 billion) annually to finance climate‑change and development initiatives—but IATA warns the measure is economically unsound, environmentally counter‑productive, and at odds with existing global climate agreements for aviation.

“Air transport is an economic catalyst, not a cash cow,” said Willie Walsh, IATA Director General. “Taxing passengers at a level three times greater than the industry’s total annual profits will raise ticket prices for everyone, weaken vital connectivity and cripple our ability to invest in the very decarbonization technologies the world expects from us.”

Key concerns with the GSLTF proposal

Issue                                                                        Reality Check

Misconception of airline profitability: 2024 global net profit is forecast at US$32.4 billion—just a 3.4% margin—the levy would demand nearly 300 % of those profits.

Threat to net‑zero investments: Airlines have committed US$4.7 trillion between now and 2050 to reach net‑zero CO₂. Diverting tens of billions annually will delay Sustainable Aviation Fuel (SAF) scale‑up, new‑technology aircraft, and operational efficiencies.

Ignores CORSIA—the global framework: States already agreed through ICAO that the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is the single, harmonized market‑based measure for international flying. Parallel taxes risk fragmentation and inefficiency.

No impact analysis: The task force provided no assessment of economic harm to developing states that rely on affordable air links for trade, tourism, and jobs. Premium cabins often cross‑subsidize economy fares; penalizing them will shrink route networks and raise prices for all travellers.

Travellers reject new flight taxes

Independent polling by Savanta across 15 countries shows strong public skepticism of additional air‑travel levies:

79 % say there are already too many taxes on flying

78 % agree taxation “is not the way to make aviation sustainable

Only 9 % support extra taxes as the best way to offset emissions, far behind SAF purchases (25 %) or investment in new technology (23 %)

A better path: accelerate SAF

Walsh added, “If the GSLTF truly wants to advance solidarity and climate action, channel funds into Sustainable Aviation Fuel production hubs, especially in developing economies. Every dollar invested in SAF cuts aviation emissions permanently while creating local green‑energy jobs.”

IATA urges governments participating in the GSLTF to:

Reaffirm CORSIA as the cornerstone of aviation climate policy.

Abandon overlapping levies that erode the sector’s capacity to reach net‑zero.

Work with industry to scale SAF, hydrogen, and zero‑emission propulsion.

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