Aviation : When French Taxation Shifts Supply

The paradox is both stark and brutal. Air travel has never carried so many passengers, and yet, in France, operators based in the country are moving forward with a fiscal sandbag tied to their ankles. At the press briefing held by the French National Federation of Aviation and its Trades (FNAM), its president Pascal de Izaguirre brought the issue back to the forefront.

The figures first tell the story of a solid global recovery in air transport. The International Air Transport Association (IATA) anticipates a record of around 4.99 billion passengers in 2025. In France, this recovery is also clearly visible: 183 million passengers expected in 2025, a +2.8% year-on-year growth and slightly above the 2019 benchmark level. But the weak signal lies in the difference in momentum. Across Europe, several indicators hover around +4 to +4.5% growth, while France is lagging behind. These figures are confirmed by the French Civil Aviation Authority (DGAC). In reality, although it may still be a bit early to state definitively, this says something about the market. Supply—bases, frequencies, and hubs—is shifting toward more fiscally and regulatory predictable environments.

In 2025, France increased the tax burden (notably through the air ticket solidarity tax, TSBA) just as airlines are required to invest. A study by consultancy firm Astérès shows that these taxes can cost up to €200 per passenger on certain routes. These levies stem solely from public policy choices, unlike competing European hubs. In economic terms, the aviation sector must contend with these externalities. The French Treasury notes that in 2025, French pricing covered about 34% of the negative externalities of air transport. The DGAC also points out that France ranks among the European countries that tax air travel the most.

To Tax or Not to Tax?

If you drain investment capacity without heavily redirecting it toward sector decarbonization, you get the worst of both worlds. Especially since, elsewhere, the tide is turning. Sweden has decided to abolish its aviation tax as of July 1, 2025. Germany, too, has reopened the debate on aviation taxation, with announcements of a reversal on a proposed tax hike (2026 budget debate). The message to the market is clear. Some states are readjusting to preserve attractiveness—not out of love for aviation, but out of concern for connectivity, employment, and maintaining aircraft and crews on their soil. In an open European market, a heavier or less stable national tax regime doesn’t eliminate demand. It merely shifts supply. The Ryanair episode—where CEO Michael O’Leary linked capacity cuts in France to rising taxes and comparisons with other countries—illustrates this reality. France, for its part, seems to keep stacking taxes.

In response, the aviation sector isn’t waiting on the state to act. Meanwhile, an impact study published by the administration estimates TSBA (Airline Ticket Solidarity Tax) revenue at around €1.3 billion. Yet, it explains that 80% of this revenue goes into the general budget and only 20% to the AFITF (which funds non-airport infrastructure, mainly road and rail). Aviation will have to wait.

This is precisely where the debate is shifting. The real question isn’t whether to tax or not. The real question is why we tax—and under what conditions it becomes economically coherent. In the meantime, the French aviation industry heads into 2026 with doubts and economic concerns.Jean-François Bourgain, February 2, 2026, for AeroMorning