Airlines warn of the impact of a potential tax on kerosene

Airlines warn of the impact of a potential tax on kerosene

European airlines have warned that the potential introduction by the European Union of a tax on kerosene could have serious consequences for tourism in Catalonia. A report prepared by consultancy Steer for the two main associations (Airlines for Europe, A4E, and the European Association of Regional Airlines, ERA) reveals that taxing air travel again would cause Catalan GDP to fall by €724 million and fall by €724 million. . 7.700 million in the Spanish economy. In addition, it will affect employment with the loss of 50,000 jobs in Spain.

Impact on tickets

“If this tax were implemented, it would mean doubling the price of kerosene that we currently have, and this represents more than 30% of the company’s costs,” graphically describes the President of the Airlines Association (ALA), Javier Gandara, who defends it. The sector is “very committed to decarbonisation”. From the airlines, they say that the main damage will be tourism, because the tax will have to be reflected in the tickets, and this will make, for example, “the German citizen prefer to fly to North Africa instead of the Costa Brava.”

The study indicates a 6% decline in passenger demand and a loss of $1,000 million in tourism spending in Catalonia, explained the consulting firm's partner Peter Wenner. For her part, A4E Director General, Orania Georgotsakou, insists that the aviation sector “every day operates more with clean fuel and all our members are more ambitious to integrate it, we are making this transition and live rates on how to achieve this”. “Not helping,” he lamented.

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Both Gorgotsaku and ERA Director Montserrat Barriga remember the progress made on clean fuels like SAF. Both argue that other policies, such as the push for a single European sky, could do much more to eliminate emissions than the EU's proposed kerosene tax.

This new rate is currently being discussed at European HQ (there are two technical sessions in April), something that could be decided in June. However, the aviation sector shows that the damage to tourism in areas such as Catalonia, the Lisbon region or Rome will be enormous. For this reason, they call on policymakers not to accept exceptions to this rate for very isolated areas.

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