The International Air Transport Association (IATA) has issued a warning regarding new tax measures in Europe. These are seen as a potential threat to the recovery of the airline industry.
According to IATA’s director general, such tax initiatives may lead to increased travel costs and disrupt the positive momentum observed in passenger demand this year.
Europe’s proposed tax policies could hinder the recovery of the aviation industry, warns the International Air Transport Association (IATA). These ‘uncompetitive cash grabs’ are feared to increase travel expenses significantly, potentially discouraging tourism and business travel. Such measures might impair economic growth, particularly in regions still recovering from the pandemic.
Director General Willie Walsh expressed optimism about the industry’s future, citing investments in decarbonisation and resilience against geopolitical and economic uncertainties as key drivers. However, he emphasised the importance of maintaining this momentum without the interference of burdensome tax policies.
Internationally, there was a 26.3% rise in demand, with capacity increasing by 25.5% compared to the previous year. This led to a slight improvement in the global load factor, reaching 79.3%.
The Asia-Pacific region led the way with a remarkable monthly demand increase of 53.2%. Capacity in this region also surged by 52.1%, resulting in the highest load factor globally at 84.9%.
The focus, according to Walsh, should be on fostering a conducive environment for growth, rather than imposing additional financial burdens on the industry. He emphasised that recovery efforts should not be jeopardised by short-sighted fiscal measures.
As airlines continue investing in sustainable practices, including decarbonisation, maintaining affordable travel is crucial. Ensuring accessibility will support ongoing recovery and growth across the sector.
IATA calls for balanced policies that support industry recovery without hindering growth. The organisation emphasises collaboration with governments to ensure sustainable, long-term progress in the aviation sector.
The IATA stresses the need for policy frameworks that are supportive rather than punitive in order to sustain the positive trends in aviation recovery.
Collaborative efforts with governments are essential to navigate the industry towards a prosperous and stable future.
