France is looking to support more eco-friendly methods of travel by creating this new flight tax in Europe.
Air travel is a serious contributor to global warming, which is the driving force behind a new Europe flight tax announced by France. Starting in 2020, the nation will add a so-called “ecotax” to nearly all flights.
French Transportation Minister Elisabeth Borne made the announcement on July 9.
“With the eco-contribution, air transport will play its part in financing the daily transport of all our citizens,” she said. “It is a response to the ecological urgency and sense of injustice expressed by the French.”
Here’s everything you need to know about this new Europe flight tax, as well as how it might impact business travel bookings in and out of France.
The Numbers Behind This New Europe Flight Tax
How will France’s new ecotax affect airfare? It’s expected to increase the price of a domestic flight by about €1.50, and it would change the cost of a business class ticket to a destination outside the European Union by about €18. In general, the cost of the ecotax will shift based on the length of a trip and the ticket type used.
This new tax won’t apply to all flights that touch down on French soil. It only applies to flights that originate in France — so there’s no tax on connecting flights that land in Paris or other French cities. And the tax will not apply on flights to Corsica and other French territories located overseas.
According to the French government, this new ecotax will raise about $200 million that can be put toward investments in more sustainable travel methods — like train travel. Still, carriers like Air France quickly voiced disagreement with the decision. Air France claims that this new Europe flight tax will cost its airlines $67 million each year. After the announcement, Air France’s stock dropped 3%.
France is Not Alone
France is not the only country that has implemented eco-friendly taxes on air travel. Germany adds a “green tax” of between €8 and €45 to each ticket. Similarly, Sweden announced plans for an environment-focused flight tax in spring of 2018. Add-on fees aren’t always environment-related. Some countries (like Japan) charge you just for leaving.
So far, those countries and their airlines have not seen ill effects related to the announcement or implementation of various fees and taxes.
Should You Travel?
The best way to save money is to not travel. That’s our philosophy at JTB Business Travel, where we help our clients assess the benefit and value of booking trips to destinations foreign and domestic.
This new Europe flight tax is sure to affect the return on investment that companies enjoy when traveling to and from destinations in France. If you want to stay on top of travel shifts and changes (like this new Europe flight tax), we can help.