SINGAPORE, 8 July 2025: The International Air Transport Association (IATA) has expressed “deep disappointment at the recommendation of the Global Solidarity Levies Task Force (GSLTF)” that would target air transportation to generate EUR78 billion through a premium flyer levy.
GSLTF aims to“improve domestic revenue mobilisation in developing countries and support international solidarity (in particular with regards to climate change mitigation and adaptation, pandemics and other development challenges.
IATA says the initial assessment of the GSLTF’s proposals reveals severe deficiencies, including the fact that a competitive airline Industry does not generate excessive profits.
Light on meaningful details
“The GSLTF announcement, while lacking any meaningful detail, quotes a CE Delft estimation that a premium flyer levy could generate EUR 78 billion (over USD90 billion) per year. That is approximately three times the airline industry’s global estimated profit of USD32.4 billion in 2024,” said IATA Director General Willie Walsh.
“Airlines’ structurally thin net profit margin (estimated at an average of 3.4% industrywide for 2024 and approximately half the global average for all industries) must also be considered in any policy deliberation.
“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 for an industry that is a lifeline for remote communities, invigorates tourism markets and links local products to global markets. Moreover, while the modalities for the GSLTF proposal are not specified, history shows us that these taxes go to the general exchequer, with little, if any, of the revenues generated going to climate change adaptation.”
IATA lists its objections
The Airline Industry Has a Multi-Trillion Dollar Commitment to Sustainability: Airlines have committed to achieving net-zero carbon emissions by 2050 — an effort that is expected to cost USD4.7 trillion over the period 2024-2050.
This will ensure that aviation can deliver its direct contribution of 3.9% of global GDP and 86.5 million jobs globally while addressing its estimated 2.5% share of global carbon emissions. Increasing aviation taxes on airlines as proposed will limit the industry’s ability to invest in solutions that deliver long-term emissions reductions.
A Specialised Climate Financing Mechanism for Aviation Already Exists: The GSLTF’s proposal disregards the role of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which was agreed upon through the International Civil Aviation Organization and is the world’s first globally agreed mechanism to manage carbon emissions from an industrial sector — in this case international aviation.
Failure to Assess Rising Costs is an Inescapable Consequence of the Proposed Levy: In addition, the GSLTF has not released any assessment of the impact that such a levy would have on the economies of the very states to which it aims to funnel the funds, or the broader impact it will have on all travellers. It has also not detailed how such funds would be used.
“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 through Sustainable Aviation Fuels (SAF), more efficient operations, and improved technology. The last thing these efforts need is a USD90 billion gut punch of a tax. With respect to air transportation, the aims of the GSLTF could best be realised by supporting investments in SAF production so airlines can deliver prosperity by connecting people and businesses to global opportunities,” Walsh concluded.
