GSLTF’s proposal is based on a CE Delft estimate, which claims the levy could generate EUR 78 billion annually, equivalent to more than USD 90 billion
As global efforts to tackle climate change intensify, the aviation sector has come under renewed scrutiny with a proposal to impose a solidarity levy on air travellers. The industry’s main representative body, IATA, has rejected the plan, warning it could disrupt connectivity, raise costs for passengers, and weaken investment in long-term climate solutions.
In a press statement, IATA says that the GSLTF’s proposal is based on a CE Delft estimate, which claims the levy could generate EUR 78 billion annually, equivalent to more than USD 90 billion. The association notes that this figure is nearly three times the airline industry’s projected profit of USD 32.4 billion for 2024. It also highlights that airlines operate on an average net profit margin of 3.4 pc, which is significantly lower than the global average across other industries.
It adds that the industry has committed to achieving net-zero carbon emissions by 2050, an effort expected to cost USD 4.7 trillion between 2024 and 2050. The statement says that the proposed levy would limit the sector’s ability to invest in sustainable aviation fuels (SAF), new technologies and operational improvements. According to IATA, this could jeopardise the industry’s role in contributing to 3.9 pc of global GDP and supporting 86.5 million jobs.
The association says that the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), which was agreed upon by the International Civil Aviation Organisation. Airline association says that the GSLTF’s proposal undermines Corsia’s role as the single global market-based mechanism for managing international aviation emissions. It urges states to support Corsia through the availability of carbon credits rather than introducing overlapping measures.
IATA further notes that the GSLTF has not provided any impact analysis on how the proposed levy would affect travellers or the economies it seeks to assist. It states that the GSLTF’s position that the levy will not affect the cost of living or household bills is misleading. IATA argues that targetting premium travel risks disrupting route economics that support connectivity, adding that higher ticket prices would ultimately affect all travellers and air cargo shipments, reducing the affordability and reach of air travel.
Willie Walsh
“The airline industry is an economic catalyst, not a cash cow. Yet governments casually suggest a tax on flyers that is three times the airline industry’s annual profit without considering the real-world side effects for an industry that is a lifeline for remote communities, invigorates tourism markets and links local products to global markets. Moreover, while the modalities for the GSLTF proposal are not specified, history shows us that these taxes simply go to the general exchequer, with little, if any, of the revenues generated going to climate change adaptation,” says Willie Walsh, Director General, IATA.
“The GSLTF says that their solidarity levies won’t increase the cost of living for ordinary citizens or impact things like household bills. This is untrue. The bottom line is that, if followed, the GSLTF’s recommendations will increase the cost of air travel for all travellers and do more harm than good. Extracting tens of billions from aviation will cripple its ability to invest in achieving net zero by 2050, change route dynamics to the extent that connectivity will suffer, and short-change countries on the critical economic support that air transportation provides,” adds Walsh.
IATA says that according to independent research conducted by Savanta in 15 countries for association, there is broad public scepticism towards air travel taxes, as the majority of respondents believe such taxes are a form of greenwashing, are excessive, and do not contribute meaningfully to environmental progress. Moreover, respondents also expressed a preference for investments in SAF, new technology and emissions reduction research over taxation.
“To be clear, airlines are not evading doing their part to mitigate the impacts of climate change. The industry is doing everything possible to achieve net zero carbon emissions with Sustainable Aviation Fuels (SAF), more efficient operations, and better technology. The last thing these efforts need is a USD 90 billion gut punch of a tax. With respect to air transportation, the aims of the GSLTF could best be realised by supporting investments in SAF production so airlines can deliver prosperity by connecting people and businesses to global opportunities,” says Walsh.
Airline association says that the proposed levy would be counterproductive to the industry’s sustainability goals and calls on governments to support aviation through policies that promote innovation and investment, rather than imposing additional financial burdens.
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