Germany's Aviation Sector Struggles with High Costs Despite Strong Demand
Despite strong demand, Germany's aviation sector faces high government-imposed costs and lower seat capacity compared to the rest of Europe, leading carriers to cut regional and domestic flights.
Newsnibs Staff
- 2026-10-14
- Updated 3:12 PM UTC
German airports handled 97.7 million passengers in the first half of 2026, down 0.8% from a year earlier, while scheduled seat capacity across the country sat at 82% of 2019 levels. The rest of Europe averaged 111% of 2019 capacity over the same period. Domestic flying within Germany has fallen to 48% of pre-pandemic levels, and capacity at smaller, decentralized airports has dropped to 18%.
Alexander Klay, a spokesperson for the BDL, the German aviation industry association, said the main structural reason for the gap is the country's level of government-imposed aviation costs. Those costs rose by €1.1 billion in 2025 to reach €4.3 billion. Aviation taxes, security charges and air navigation fees have more than doubled since 2019; air traffic control charges alone are up 194% over that period. Klay said state-imposed costs now add roughly €30 to €35 to a typical one-way European flight.
The German government cut short-haul, medium-haul and long-haul aviation taxes starting July 1. Industry leaders say the reductions aren't enough to change the country's competitive position. Sweden offers a contrasting data point: it abolished its aviation tax entirely in July 2025, and its seat capacity rose 5% in the first half of 2026.
Carriers have been pulling back. Ryanair is closing its Berlin base, which has seven aircraft, on October 24. EasyJet has cut its German capacity by 67.1% from 2019 levels. Lufthansa Group is shifting its growth toward lower-cost operations and long-haul flying, closing its regional subsidiary Lufthansa CityLine and removing about 20,000 short-haul flights.
Frankfurt and Munich airports are investing in infrastructure to shore up their status as international hubs even as regional and domestic flying contracts. Frankfurt's Terminal 3, which cost €4 billion, began operations in April. German capacity is projected to reach only 88% of pre-pandemic levels by winter 2026-27, while the rest of Europe is expected to hit a record 118%.
Photo by Anna Gru on Unsplash
