Energy Taxation Directive - European aviation and hospitality sector's recommendations on an aviation fuel tax

As Denmark has assumed the Presidency of the Council of the European Union and announced in its programme the objective to advance—and potentially conclude—negotiations on revising the Energy Taxation Directive (ETD), A4E, ACI-E, ERA, HOTREC, and respective members collectively shared their views on an aviation fuel tax.

An aviation fuel tax would merely shift air traffic to non-EU countries where such costs do not apply, making the EU aviation and tourism sectors less competitive compared to non-EU destinations. The resulting economic losses, including declines in GDP and employment, would far outweigh any short-term gains in tax revenue across the EU. For example, in Spain, Portugal and Italy, such a tax would lead a decrease in tourism visitors of 7.4%, 7% and 5.5% respectively, resulting in losses of approximately €6.1 billion, €1.5 billion, and €5.4 billion in tourism expenditure7. Similar impacts are expected in other EU Member States as well, negatively affecting the entire aviation and tourism value chain across Europe.

The coalition believes that the latest ETD compromise text from May 2025 provides a solid basis for discussion. It takes into account the global competitive landscape of aviation and its decarbonisation pathway, maintaining the exemption regime for aviation fuels as set out in Directive 2003/96/EC, Articles 14(1)(b) and 14(2) while introducing a review clause.

 Please find the joint letter to the Danish Presidency under "Related documents".