The International Air Transport Association has strongly rejected a new proposal from the Global Solidarity Levies Task Force (GSLTF) to impose a tax on premium air travellers, warning it could threaten the financial health of the airline industry and undermine global sustainability efforts.
The GSLTF has suggested taxing first and business class passengers, as well as private jet users, to boost public revenue for developing countries and support initiatives related to climate change, health crises, and global development challenges. According to consultancy CE Delft, such a levy could raise up to €78 billion (approximately US$90 billion) annually.
IATA, which represents over 300 airlines worldwide, contends that the proposed levy is unrealistic and economically unsound. In a statement, the association pointed out that the airline industry’s projected global net profit for 2024 stands at just US$32.4 billion, less than a third of the revenue the GSLTF estimates could be generated through the tax.
The association highlighted the industry’s persistently slim profit margins, noting an average net margin of just 3.4% across the sector roughly half the global average across all industries. It warned that imposing additional financial burdens on airlines would restrict their ability to invest in crucial sustainability measures.
“The airline industry is extremely competitive, with thin profit margins,” IATA stated. “Increasing aviation taxes on airlines as proposed will limit the industry’s ability to invest in solutions that deliver long-term emissions reductions.” IATA also reiterated its sector-wide commitment to achieving net zero carbon emissions by 2050, a goal that will require an estimated US$4.7 trillion in investment. The association cautioned that diverting financial resources through additional taxation would hamper this transition.
In addition to its decarbonisation goals, IATA pointed to the global economic role of aviation, which supports 86.5 million jobs and contributes 3.9% to global GDP. It also cited existing mechanisms such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), a UN-endorsed global agreement under the International Civil Aviation Organization (ICAO), designed to manage emissions from international flights.
According to IATA, overlapping policies like the proposed Solidarity Levy risk creating a “fragmented, inefficient and inconsistent global policy framework,” undermining international coordination and existing climate commitments. The debate now highlights a growing tension between efforts to fund global development initiatives and the aviation sector’s need to remain financially viable while undertaking its own decarbonisation journey.