The French aviation industry is facing difficulties amidst increased taxation, which has led to decreased traffic, reduced profitability, and concerns over France’s position as a key European hub. A significant surge in the 'solidarity tax on airline tickets' (TSBA), introduced in March 2025, has notably increased costs for passengers and airlines alike.
This tax hike, intended to raise €850 million annually for the state, raises €4.77 per domestic or intra-European flight, with longer routes incurring fees up to €120. Airlines have transferred the added costs to travelers, contributing to inflation in airfares and diminishing the competitive edge of French airports, such as Paris Charles de Gaulle. Since Q2 2025, passenger capacity from France has increased only marginally compared to the European average, and many transit flights are choosing rival airports outside France, further impacting the sector.
Industry Concerns and Impact
Industry groups such as FNAM and DGAC have expressed concerns, warning that the tax may deter tourism and harm the country's reputation as a travel destination. Major carriers like Air France-KLM also reported that increased ticket prices are leading to a decline in demand, especially in business aviation, where activity has fallen sharply. Critics describe the tax as unfair and counterproductive, with the sector urging lawmakers to reconsider options in the 2026 budget.
Overall, the current trends suggest that without relief measures, the French aviation sector may experience further decline, affecting jobs, routes, and France's attractiveness as a global travel hub. Stakeholders advocate for policy revisions to restore competitiveness and sustain the industry’s vital role in the economy.
