France Hikes Airline Tax in 2025
France’s National Assembly and Senate have finally approved a draft finance bill for 2025 that dramatically increases the controversial airline ticket “solidarity tax” (Taxe de Solidarité sur les Billets d’Avion – TSBA). After months of delays and heated debates, the new bill will come into effect on March 1, 2025, sparking significant concerns across the aviation industry about higher travel costs and reduced competitiveness.
Originally introduced in 2006 by former President Jacques Chirac and later expanded in 2020 to include an eco-tax component, the TSBA is now set for a substantial rise. Under the new regulation, economy-class tickets for flights within France or Europe will see the tax jump from EUR2.63 (USD2.72) to EUR7.40 (USD7.65). Business-class tickets will face an increase to EUR30 (USD30.90). For long-haul flights, passengers can expect taxes to range from EUR15 to EUR40 (USD15.50-41.35), with premium services, such as business and first class, incurring rates up to EUR120 (USD124). The business aviation sector will bear the steepest hikes, with taxes for long-distance flights reaching as high as EUR2,100 (USD2,170).
Air France, one of the country’s leading carriers, anticipates that the increased TSBA will impact its bottom line by approximately EUR100 million (USD103 million). CEO Anne Rigail, speaking to La Tribune on February 9, expressed concern that these tax hikes could further strain the airline’s finances at a time when it is still recovering from the COVID-19 downturn. She warned that higher taxes might drive up travel costs, potentially deterring foreign passengers and weakening French companies against international competitors. “We regret this decision, considering that we had repeatedly warned about the negative impact this increase will have on the competitiveness of French aviation,” an Air France spokesperson commented.
The industry reaction has been overwhelmingly negative. The European Business Aviation Association (EBAA) has denounced the new rates as excessive and unfair, signaling its intention to appeal the decision. Meanwhile, France’s national aviation union, Fédération Nationale de l’Aviation et de ses Métiers (FNAM), criticized the 2025 Finance Bill for hiking airline ticket taxes without conducting any economic impact study. FNAM president Pascal de Izaguirre argued that the increases would raise travel costs, jeopardize territorial connectivity, and severely hamper airlines’ ability to finance necessary investments in energy transition—a scenario that could potentially lead to job losses, particularly within French SMEs operating in the business aviation sector.
The tax hikes have also prompted drastic warnings from low-cost carrier Ryanair. In November, the airline threatened to drop ten French regional airports if the government proceeded with the proposed increases, indicating that capacity on routes to and from these airports might be cut by 50% starting January 2025.
The adoption of the finance bill was delayed by the July 2024 parliamentary elections, which ushered in a new government and created uncertainty over the bill’s timing and details. Although the bill was originally slated for adoption by December 31, 2024, it was only finalized in early February after prolonged debates in both chambers.
As France prepares to implement these sweeping tax increases, the aviation sector braces for a challenging period ahead. Stakeholders across the industry are closely monitoring the situation, as the new TSBA rates are poised to reshape travel costs and impact the competitive landscape of French and European aviation.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com