The International Air Transport Association (IATA) and leading aviation groups have rejected a proposed tax on premium air travel unveiled at the International Conference on Financing for Development (FFD4) conference in Seville, June 30. It would fund global solidarity and climate change efforts.
The proposed ‘Premium’ tax levy
The initiative, supported by the European Commission and coordinated by the Global Solidarity Levies Task Force, was launched June 30 at the U.N. Financing for Development conference in Seville. It aims to raise funds by taxing business- and first-class passengers, including private jet travellers, to support global climate and development efforts. The proposal, in line with global sustainability goals, has sparked debate over its potential impact on airline financial stability and international travel.
The travel levy would complement a broader list of proposed aviation-related taxes, raising substantial funds for climate change action. A June assessment from the GSLTF outlined several options, including ticket taxes such as frequent flyer and modular ticket taxes, commercial jet fuel charges, and private jet fuel levies. Environmental consultancy DE Delft estimated that ticket-based taxation alone could generate between €62 billion and €84 billion annually. Adding a premium levy would raise an additional €78 billion, according to its latest research.
The initiative, backed by the coalition and co-chaired by France, Kenya, and Barbados, aims to align with the UN climate finance and equity ambitions ahead of COP30. As one of the largest sources of emissions, the aviation sector would increase its contribution to what the GSLTF describes as a ‘fair transition and resilience’, offsetting the carbon footprint of premium travel toward development efforts, such as revenue mobilisation, climate crisis mitigation, and pandemic adaptation in developing countries.
The coalition is calling for broader international support. French President Emmanuel Macron highlighted the challenge of global financing at the FFD4. He said:
“We need those who benefited from globalisation to contribute more. European Commissioner for Climate, Net Zero and Clean Growth, Wopke Hoekstra, added, “I invite all partners to join and closely follow the important work of the Taskforce, especially as we approach COP30.”
IATA’s Counter Arguments: Global solidarity, but at what cost?
IATA rejected the proposed premium travel levy, expressing disappointment and warning it would make it challenging for airlines to meet climate targets. IATA called the tax disproportionate, raising the issue of airline financial sustainability. The group argues that the industry is already experiencing weak margins while investing $4.7 trillion to reach net-zero emissions by 2050. IATA also criticised the proposal for overlooking the existing systems, such as CORSIA, the ICAO-led framework for managing aviation carbon emissions and offsets.
IATA General Director Willie Walsh said:
“The airline industry is an economic catalyst, not a cash cow. Yet governments casually suggest a tax on flyers that is three times the airline industry’s annual profit without considering the real-world side effects.”
The association also warned that the taxes could impact route viability, reduce connectivity, and lead to higher fares in general.
Walsh added:
“To be clear, airlines are not evading doing their part to mitigate the impacts of climate change. The industry is doing everything possible to achieve net zero carbon emissions with Sustainable Aviation Fuels (SAF), more efficient operations, and better technology.”
According to a Savanta survey commissioned by IATA across fifteen countries revealed public scepticism towards aviation taxation was revealed. Nearly 80% of respondents said air travel is already overtaxed, while 78% viewed further taxation as an ineffective climate action strategy. Only 9% supported taxation, with most preferring alternative methods such as Sustainable Aviation Fuel investments (SAF), low-carbon technologies, and climate research.
France’s Blueprint and Greenpeace’s Support
France’s introduction of a premium travel tax on business and first-class tickets departing French airports, in late 2024, has already laid the groundwork for national action. The policy previously reported by Travel Radar aims to steer travellers’ choices toward lower-carbon modes of transportation, such as rail, to fund sustainable infrastructure.
Greenpeace International welcomed a broader push for premium flyer levies, calling it a crucial step in holding “binge users of this undertaxed sector” accountable. Rebecca Newsom, the group’s global political lead, said,
“With the cost of climate impacts surging in countries least responsible for the crisis, bold, cooperative action that makes polluters pay is not just fair—it’s essential.”
The proposal to tax premium air has sparked global debates over fairness, climate change responsibility, and aviation financial sustainability. With IATA pushing back and campaigners doubling down, the question remains: should premium travellers pay more?
Share your thoughts in the comments and follow Travel Radar for updates on sustainable aviation.
