IATA Pushes Back Against Global Solidarity Levy on Air Travel
IATA Criticises Proposal to Tax Airline Industry
The International Air Transport Association (IATA) has strongly opposed a proposed air travel tax by the Global Solidarity Levies Task Force (GSLTF). The proposal aims to raise funds for climate mitigation, pandemic preparedness, and development in low-income countries.
But IATA warns that targeting airlines is misguided and harmful to both the industry and the global economy.
Tax Plan Ignores Industry’s Financial Realities
The GSLTF estimates the proposed levy on premium flyers could generate €78 billion annually. That’s three times more than the airline industry’s estimated global profit of $32.4 billion in 2024.
Airlines typically operate on thin profit margins, averaging just 3.4%, well below the global business average. IATA argues that such a tax would cripple airlines’ ability to stay financially viable, let alone thrive.
Airlines Are Already Committed to Sustainability
The aviation industry has pledged to reach net zero carbon emissions by 2050. Achieving this goal will cost an estimated $4.7 trillion between 2024 and 2050.
Additional taxes would hinder investments in clean technologies and Sustainable Aviation Fuels (SAF). Airlines are investing heavily in greener operations and don’t need further financial burdens to slow progress.
Proposal Undermines Existing Global Agreements
The levy ignores the global CORSIA framework, agreed by the International Civil Aviation Organization (ICAO). CORSIA is the world’s first global, sector-specific carbon reduction plan.
The GSLTF proposal overlaps and undermines this system, creating inefficiencies and conflicting frameworks. IATA urges states to support CORSIA instead of fragmenting global climate efforts.
The GSLTF hasn’t provided data on how the levy would impact developing economies or the airline industry. Premium passengers play a vital role in sustaining flight routes that benefit all travellers.
Reducing this demand through taxation could shrink global connectivity and make flying more expensive for everyone. Higher operating costs would also raise the price of airfreight and consumer goods.
IATA Director General Willie Walsh says the tax plan is unrealistic and damaging. He argues governments wrongly see airlines as easy sources of revenue without considering real-world effects. “This industry connects people, drives tourism, and supports millions of jobs. It’s not a cash cow,” Walsh said. A tax of this size would derail environmental progress and hurt global access to air travel.
Public Opinion Rejects Air Travel Taxes
A recent IATA survey conducted in 15 countries revealed strong public opposition to new taxes on air travel:
- 79% believe there are already too many flying taxes
- 73% say green taxes are government greenwashing
- 78% think taxation won’t make aviation sustainable
- 74% distrust governments to spend air travel tax revenues wisely
- Only 9% supported taxation as a way to offset emissions
- 88% want funds reinvested into improving passenger experience
IATA: Invest in SAF, Not More Taxes
Instead of taxing airlines further, IATA calls for investment in sustainable aviation fuel (SAF) production. This will help reduce emissions without harming the industry’s ability to serve global communities. “If governments truly want to support climate goals, they should back innovation, not punish connectivity,” Walsh concluded.