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Date Published: 11/12/2023

European jet fuel tax could cost Spain 4.5 million tourists per year

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The airlines have asked the Spanish government to veto the tax which they say will destroy the tourism industry

European jet fuel tax could cost Spain 4.5 million tourists per year

Following several years of negotiations, the EU has taken another step towards implementing energy taxes that include a levy on jet fuel, a measure which the Airline Association (ALA) warns will hike up ticket prices and cost Spain up to 4.5 million tourists a year.

President of the ALA Javier Gándara is certain droves of holidaymakers will choose cheaper destinations like Turkey and Jordan and has appealed to the Spanish government to veto the tax increase.

The package of levies falls under Brussel’s plans to decarbonise the aviation industry but it will unfairly stack the odds in favour of non-EU countries, whose airlines won’t be taxed with this new fuel rate. British and German tourists, Mr Gándara said, are likely to choose these alternative holiday destinations over Spain.

If the measures are pushed through, the ALA has asked Spain to provide some kind of aid to keep the price of airline tickets down, as has been done in the UK and the US.

Unlike other aspects of the ‘Fit for 55’ directive, which have received the approval of the member states, the proposed kerosene tax has divided nations, especially considering the fact that jet fuel already costs six times more than regular kerosene.

EasyJet, which will open a new base on the Costa Blanca next year, has also railed against the tax, arguing that it will make flying “something for the very rich” rather than a mode of international travel open to all budgets.

"There are movements that proclaim that you should be ashamed of flying. I think it is good and that it has improved the lives of millions of people, what we have to do is make sure that remains affordable and increasingly sustainable," the general director for southern Europe added.

Meanwhile, the Spanish aviation sector is working on a transition from polluting fossil fuels to new sustainable alternatives, known as SAFs, and the international community has just set a series of objectives that will force Spain and the rest of the EU to introduce them more quickly.

At the moment, SAFs only represent 0.2% of the fuels used in aviation worldwide.

For now, the future of the kerosene tax is very uncertain and in order for it to come into effect, all 27 member states must unanimously vote in favour of the levy, something which the ALA is still optimistic it can prevent.

In other news: 5 things you should know before flying to Spain for Christmas

Image: Government of the Canary Islands

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