German airlines seek tax relief as jet fuel costs surge

Germany’s airline industry has urged the government to suspend the air transport tax after a sharp rise in jet fuel prices squeezed carriers’ costs. The Federal Association of the German Aviation Industry and the German aviation association BDF say kerosene prices have more than doubled since the Iran war began, with fuel accounting for about a third of total flight costs.

The appeal comes as airlines across Europe face heavier pressure from higher fuel bills and more difficult winter planning. Lufthansa and other German operators have been exposed to the same market shock, even as hedging can soften part of the impact. Industry groups are pressing for temporary relief while the conflict continues, arguing that the tax burden now compounds already elevated operating costs. The request also reflects concern that persistent fuel inflation could force carriers to adjust pricing, capacity and route networks if margins narrow further.