The International Air Transport Association (IATA) has condemned a proposal by the Global Solidarity Levies Task Force (GSLTF) to impose new taxes on air travel, warning that the move would harm both the aviation industry’s climate ambitions and global economic connectivity.
The GSLTF’s proposal, aimed at raising funds to support climate change mitigation and development efforts in low-income countries, recommends targeting air travelers—particularly premium flyers. An estimate cited by the Task Force claims such a levy could generate around €78 billion ($90 billion) annually. But IATA argues this figure is wildly out of proportion, pointing out that it nearly triples the airline industry’s projected 2024 global profit of $32.4 billion.
“The airline industry is an economic catalyst, not a cash cow,” said Willie Walsh, IATA’s Director General. “Yet governments are suggesting a tax that is three times the industry’s annual profit, without considering the real-world consequences for connectivity, economic growth, and climate action.”
Industry Faces Heavy Financial and Environmental Responsibilities
Airlines worldwide have committed to achieving net zero carbon emissions by 2050, a transformation expected to cost the sector $4.7 trillion between 2024 and 2050. This effort is essential to sustain aviation’s global economic contribution, which includes supporting 86.5 million jobs and driving 3.9% of global GDP.
According to IATA, imposing additional taxes will divert funds away from investments in Sustainable Aviation Fuel (SAF), modern aircraft, and operational efficiencies—the very measures needed to reduce emissions.
Overlooking Existing Climate Frameworks
IATA also criticized the GSLTF proposal for ignoring the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the world’s first global market-based emissions reduction mechanism for any industrial sector. Established through the International Civil Aviation Organization (ICAO), CORSIA is designed to be the single global measure for managing emissions from international flights.
“Overlapping measures like this new levy will undermine CORSIA’s effectiveness, fragment international efforts, and create confusion,” Walsh warned. “Governments should focus on making CORSIA successful by supporting the availability of carbon credits rather than piling on new taxes.”
Economic Ripple Effects Could Undermine Development Goals
The association expressed concern that the Task Force had not assessed the economic impact of its recommendations. IATA warned that taxing premium travel could disrupt airline route networks, which rely on higher-paying passengers to subsidize connectivity to remote and developing regions.
The result, it said, would be fewer flights, higher ticket prices for all passengers, increased costs for air cargo, and ultimately slower economic growth—especially in countries the Task Force claims it wants to support.
“The notion that this tax won’t affect ordinary people is misleading,” said Walsh. “Higher costs will inevitably trickle down to all travelers and consumers, hurting trade, tourism, and economic inclusion.”
Public Opinion Against Air Travel Taxes
Supporting its argument, IATA cited independent research from Savanta, which polled 6,500 air travelers in 15 countries. Key findings include:
- 79% believe there are already too many taxes on flying.
- 78% say taxation won’t make aviation more sustainable.
- 74% do not trust governments to use climate tax revenues effectively.
- Only 9% support taxation as a means of reducing aviation emissions, compared to 25% favoring SAF investments and 23% supporting emissions-reducing technologies.
A Call for Smarter Climate Investments
Walsh emphasized that the aviation industry is not shirking its climate responsibilities. Instead, he called for policies that encourage SAF production and emissions-reducing technologies.
“The last thing this industry needs is a $90 billion blow from misguided taxes,” Walsh said. “If the goal is climate action and economic solidarity, the better approach is to support aviation’s transition to net zero, not to cripple it financially.”
Stay informed, stay ahead with The Ameh News
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
