France is set to introduce a tax on airlines flying from its airports in a bid to support the environment, the transport minister said.
The move is expected to raise around €180 million from 2020.
Following the news, shares in airlines across Europe fell with Air France down 5.2%, Ryanair down 4.8%, easyJet down 4% and Lufthansa down nearly 3%.
The new French tax will be €1.5 for flights within France or the European Union, €3 for economy flights out of the EU, €9 for intra-EU business class and up to €18 for business class tickets out of the EU.
Transit flights will not be taxed.
In response to the tax proposal, Air France said the new tax would significantly hurt its competitiveness and represent an additional cost of over €60 million per year.