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German Aviation Industry Association warns of economic impact as rising costs force airlines to cut flights

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German Aviation Industry Association warns of economic impact as rising costs force airlines to cut flights

Germany’s air travel recovery has slowed sharply in 2025, falling well behind most of Europe, as state-imposed costs continue to deter airlines and push flight capacity abroad, according to a new report released by the German Aviation Industry Association (BDL).

Passenger numbers at German airports reached 99.4 million in the first half of the year, still 15.8% below 2019 levels. Growth slowed to just 2.8% on the prior year, a drop from the 10% gain recorded over the same period in 2024, placing Germany 28th out of 31 European countries for post-pandemic travel recovery.

BDL president, Jens Bischof, warned the government is ignoring the structural crisis facing Germany as an aviation hub, citing a €1.1bn ($1.28bn) increase in state-imposed aviation costs this year alone. These now total approximately €4.4bn ($5.12bn) annually, including aviation taxes and other regulatory burdens.

"With the decision against an urgently needed relief in the state location costs for air traffic from Germany, the federal government would squander an important opportunity for new economic growth," said Bischof. "The demand for air travel is greater than ever before throughout Europe - but because government-induced costs have more than doubled since 2019, airlines are giving Germany a wide berth.”

The 2026 draft federal budget fails to include any tax relief for airlines, contrary to commitments in the coalition agreement, the BDL noted. The association is calling for immediate reversal of the aviation tax hike introduced in May 2024.

A new BDL survey found that the number of aircraft based in Germany by point-to-point European carriers has dropped from 190 in 2019 to 130 in 2025. Each relocated aircraft represents around 170 lost jobs and €70 million ($81.4 million) in annual economic output, leading to over 10,000 job losses and €4bn ($4.65bn) in foregone value added.

Germany's domestic air traffic is also stagnating. The number of intra-Germany flights sits at just 49% of 2019 levels - including feeder flights to major hubs - with point-to-point services between German cities holding at just 20% of pre-pandemic capacity.

By contrast, countries such as France, the UK, and Poland have restored 94% of their domestic air capacity.

The BDL estimates that operating a typical European flight from Germany incurs €35 ($40.75) in state costs per passenger - or €4,500 to €5,000 ($4,656-$5,821) per flight.

Looking ahead, the country’s upcoming winter flight schedule shows little sign of a turnaround.

While German air traffic is projected to reach 90% of 2019 levels, this still trails far behind other European countries, which are forecast to hit 116% of pre-pandemic traffic during the same period.

 

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