Imposing an air tax on frequent flyers in Europe: to reduce civil aviation emissions, penalize only those who pollute the most, and generate new resources to fund the transition. A solution that would have a relatively small impact on the wallets of those who choose air travel, but significantly affect the sector’s emissions trajectory. This sector, after the downturn in 2020, continues to increase the greenhouse gases it generates. The proposal for a frequent flyer tax has been formalized by the New Economics Foundation (NEF), Stay Grounded, and other NGOs in a report released on October 17.
Frequent Flyer Tax: One Tool Among Others
The report explains that reducing aviation pollution requires a range of tools. The frequent flyer tax alone is not enough and could even increase inequalities. The authors suggest introducing the tax alongside removing tax exemptions on aviation fuel (more than 10 billion euros annually) and on other taxes (over 26 billion euros annually). In other words, a restructuring or elimination of the substantial subsidies to the sector.
“This, combined with a frequent flyer tax, would create a socially fair way to combat excessive pollution, caused mainly by wealthier frequent flyers, while still maintaining affordable access to occasional flights for lower-income groups,” the authors explain.
Who Flies More? The Wealthier
This is not a crusade against air travel but rather a significant course correction. The goal is to transform the habits of certain population groups, without punitive intent. According to the report, introducing a frequent flyer tax would reduce European aviation emissions by 21% and would primarily affect wealthier groups.
Based on several passenger surveys across Western European countries, the report highlights that frequent flyers are almost always the wealthiest:
- Just over half of people (52%) do not fly at all.
- On average, only 11% of people fly more than three times a year.
- 35% of the wealthiest households (earning over €100,000) take three or more round-trip flights annually, compared to only 5% of the poorest households (earning less than €20,000).
- 70% of the poorest households do not fly in a given year, compared to only 20% of the wealthiest households.
How the Frequent Flyer Tax Works
The proposal by the New Economics Foundation, Stay Grounded, and other NGOs would result in a 21% reduction in EU aviation emissions. Most of this decrease would come from a change in habits among frequent flyers, with the top 5% of passengers flying less frequently. How? In short, the system triggers a tax after two flights in a year.
Here’s how the frequent flyer tax would work in detail:
- A tax is applied to each flight taken in a year;
- The first two flights are exempt from the frequent flyer tax;
- The tax starts at 50 euros and increases with the number of flights taken. The 5th and 6th flights would incur a surcharge of 100 euros, the 7th and 8th flights would add 200 euros, and from the 9th flight onward, each ticket would cost an additional 400 euros;
- Additional surcharges apply based on flight distance (50 euros for medium-haul flights, 100 euros for long-haul flights) and flight class (an extra 100 euros for business class tickets).
The table below summarizes the progression of the additional tax, with details for each criterion:
According to the report, this approach could generate €63.6 billion per year, which would not burden most citizens. This amount of resources equals six times the tax revenue from aviation taxes in Europe and represents 20% of the annual public investment needed to achieve the EU’s climate goals.
Download the Frequent Flyer Tax Proposal.