Flight tax threatens to erode Brussels Airlines profits by €1 million

The increase in the flight tax that the De Wever government wants to introduce will cost Brussels Airlines 1 million euros. So, write the business newspapers L’Echo and De Tijd. Indeed, it turns out that the increase also applies to tickets that were already purchased before the introduction of the new law, usually on July 1st.

To recap, the previous federal government introduced an embarkation tax in April 2022. The tax is ten euros for flights under 500 km, two euros for journeys of more than 500 km to destinations within the EU, the United Kingdom, and Switzerland, and four euros for the most distant destinations.

One of the new measures in the coalition agreement of the new De Wever government is an increase in the airline tax. The so-called boarding tax will increase from two to four euros to five euros; the fare for the shortest flights will remain at ten euros.

According to Finance Minister Jan Jambon (N-VA), the rate remains particularly competitive compared to neighboring countries, while the burden shifts from labor to consumption and pollution.

In France, for example, the minimum airline tax rate is 7.40 euros. In the Netherlands, the cost is 29.40 euros per passenger and flight. And depending on the destination, a passenger departing from an airport in Germany pays between €12.73 and €58.06 in tax.

Voting on the law postponed

Usually, the program law contains a whole series of reforms, including the measure to increase the aviation tax, which was to be voted on Thursday in Parliament, so that the increase could take effect on July 1st. However, due to a maneuver by the opposition, the discussion of that text has been postponed until the Council of State issues an opinion on a series of amendments.

If the Council of State handles that opinion within five working days, the program law could, in principle, be approved in Parliament within two weeks, which is likely to happen. If not, if, for example, the opposition comes up with new delaying tactics, it will be for after the summer recess.

‘Adding the words ‘sold from’ would suffice to solve our problem’

What is remarkable, however, according to L’Echo and De Tijd, is that the higher tax applies to all passengers who depart from a Belgian airport after the introduction, including those who purchased their tickets months ago.

And that is causing financial problems for some airlines, which have already set their fares at the time of ticketing. Usually, airlines pass on the cost associated with such taxes to the consumer; however, Brussels Airlines, for example, will bear the cost of this tax increase on tickets that have already been sold.

For the Lufthansa subsidiary, this would result in a loss of €1 million. “On a 100-euro ticket, our current profit margin is 3.80 euros. Because of the additional tax, which almost completely disappears,” financial director Nina Öwerdieck told both newspapers.

Brussels Airlines also points out that the timing of the increase, in the middle of the summer vacation period for which it expects nearly two million passengers, makes the measure particularly painful. The airline is already struggling with rising fuel prices, strikes, and geopolitical uncertainty, including the cancellation of flights to and from Tel Aviv.

Öwerdieck, therefore, advocates that the fee should only be applied to tickets sold after the law comes into effect. “Adding the two words ‘sold from’ would already suffice to solve our problem,” Öwerdieck said.

Ryanair is not happy either

When the De Wever government’s plans became known, Ryanair, which flies mainly from Belgium to European destinations, called the increase in the flight tax “excessive.” According to the airline, raising the flight tax to five euros for passengers amounts to “an excessive tax increase of up to 150%.”

Ryanair also stopped flying from Maastricht-Aachen Airport in the Netherlands in May. The airline, which called the Dutch flight tax “expensive,” deemed it unsustainable and relocated its operations to Charleroi, which consequently has a significantly lower flight tax.

€38.4 million extra

The EUR 2 tax on flights within the EU of more than 500 km generated 22.1 million euros last year. That of four euros on flights outside the EU of more than 500 km generated 16.3 million euros. Together, therefore, they account for €38.4 million.

And to be complete: The 10-euro tax on short-haul flights, up to 500 km, one that will not change, generated 3.9 million for the Treasury last year. Budget tables of the federal government circulating show that the tax is expected to create an additional 18.5 million euros in 2025, and even 37 million euros more from 2026.

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