Merz pledges further air tax cut to stem German airport connectivity loss

German Chancellor Friedrich Merz announced plans to further reduce the air passenger tax, arguing the reversal of the July 2026 increase is insufficient to restore competitiveness. Carriers are shifting capacity to foreign airports due to high levies, affecting both low-cost and legacy airlines. The move signals a policy shift to protect German aviation hub status, but its fiscal impact and legislative path remain uncertain.

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