France's proposed aviation tax increase for 2025: The rise and fall

The French government proposed a significant increase to the airline ticket solidarity tax (TSBA) as part of its 2025 finance bill, aiming to generate EUR1 billion annually from 2025.

The proposal sparked widespread industry concern, with warnings it would harm France's global competitiveness, tourism, employment and sustainability investments, while creating distortions in the EU Single Aviation Market.

Air France-KLM projected severe financial impacts, while a Deloitte study highlighted the risks of job losses, lost tax revenue and weakened regional connectivity.

Amid mounting opposition from stakeholders, the measure was ultimately rejected by the French Parliament, leading airlines to suspend pre-emptive TSBA collections and issue refunds to affected passengers.

The debate underscored the challenges governments face in balancing fiscal objectives with economic and environmental sustainability in aviation.