British Airways Sued by Sabre Over Unpaid UK Digital Tax
British Airways (BA, London Heathrow) is facing a lawsuit filed by Sabre Corporation in the U.S. District Court for the Northern District of Texas over the airline’s alleged refusal to reimburse nearly USD 454,000 in United Kingdom Digital Services Tax (DST) payments.
According to court filings, Sabre argues that under the two companies’ long-standing 1991 services agreement—covering taxes associated with their global reservation systems—British Airways is obligated to reimburse all taxes incurred through their partnership. Sabre claims it paid USD 453,863 in DST in 2024 on BA-related revenue and invoiced the airline for reimbursement in August 2025, but the carrier declined payment.
The UK’s Digital Services Tax, introduced in 2020, applies to revenue generated from digital platforms operating in the country. Sabre asserts that the tax falls within the scope of reimbursable expenses defined in its agreement with British Airways, while the airline reportedly disputes that interpretation.
British Airways declined to comment on the ongoing litigation. The case highlights growing tensions between global airlines and technology providers as digital taxes reshape cross-border business models in the travel technology sector.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com