Lufthansa: Germany & EU have ‘long way to go’ to rectify unfair competition in Europe
Lufthansa Group continues to lobby lawmakers to make changes to the German and European regulations that would level the playing field for German and European carriers.
In its latest Policy Brief newsletter, Lufthansa Group urged Germany and the European Union (EU) to continue working to rectify the unfair balance of competition in Europe, whereupon airlines, based in the EU, are “unilaterally disadvantaged in global competition.”
On December 16, 2025, Lufthansa Group published its latest edition of the Policy Brief (Politikbrief), continuing to lobby for European and German lawmakers to change laws and regulations that would balance out the playing field for EU-based carriers.
“Germany has lost ground as an aviation location. The federal government has recognized this and decided to reduce aviation taxes and fees,” Policy Brief’s foreword read, adding that while this was an important first step, which has enabled Lufthansa to continue operating feeder flights from/to Munich Airport (MUC), “the political course for aviation must now be urgently reset in Brussels as well.”
“Airlines and hubs in the EU face framework conditions that unilaterally weaken their international competitiveness. These include, among others, steadily rising taxes and fees, strict regulatory requirements, additional and unilateral climate policy requirements, and insufficient infrastructure.”
Lufthansa Group explained that the current coalition government in Germany has taken the first step to improve the country’s competitive position in Europe and internationally. However, the taxes are still exorbitantly high.
According to the group’s calculations, in 2019, an Airbus A320 with 150 passengers departing Frankfurt Airport (FRA) to an EU destination would have a tax/fee burden of €2,655 ($3,121). That burden is now €4,847 ($5,699) and will go down to €4,316 ($5,074) following the German government’s decision to lower aviation taxes from July 2026.
“This is an important first step – with immediate impact: Lufthansa and Eurowings will maintain connections next summer that had already been under review.”
However, the Germany-based airline group, with subsidiaries in Austria, Belgium, Germany, Italy, Malta, and Switzerland, warned that the country’s aviation sector is still suffering from high location costs.
The company highlighted that while aviation taxes in Germany will be lower from July 2026, an A320 with 150 passengers departing from Istanbul Airport (IST) or Zurich Airport (ZRH) will pay fees and taxes of €550 ($646.37) and €2,900 ($3,408), respectively.
“Fees for air traffic control and aviation security must – as announced – be reduced swiftly. And the EU must finally act.”
On a European level, the Lufthansa Group blasted the European Commission’s (EC) Sustainable Transport Investment Plan (STIP) as falling “far short of expectations.” The plan does not reduce prices for sustainable aviation fuels (SAF) nor create a level playing field, it stated.
“Crucial are concrete measures to lower SAF prices in the long term, targeted development of production capacities for biogenic and synthetic SAF, and greater flexibility for airlines, e.g., through a book-and-claim system.”
The EC unveiled the STIP on November 5, saying that it was “a pivotal roadmap to rapidly accelerate the energy transition of aviation and waterborne transport sectors.” According to the Commission, “regulatory stability” was crucial to attract investment, with the plan sending a message to investors that it has stable targets and that the EU will support the industry during the transition.
As part of the plan, the EC expected to mobilize at least €2.9 billion ($3.4 billion), including at least €2 billion ($2.3 billion) to “rapidly remove key investment barriers and bridge the financial gap in the short-term” for SAFs until 2027.
In a statement on November 6, the International Air Transport Association (IATA) noted that STIP was “a significant step in recognizing the urgent need to accelerate air transport’s decarbonization,” yet outlined several areas of concern. Willie Walsh, the Director General of IATA, added that the association was concerned “that the STIP falls short of critical industry expectations.”
“We hope this is just the start of a continued review of EU aviation sustainability initiatives, which will ultimately lead to a more efficient and successful program of decarbonization for aviation.”
Nevertheless, Lufthansa Group said that “isolated funding pots and reduced reporting obligations” were merely “cosmetic corrections,” with the group calling for the EU’s “fundamental structural reforms.”
Sustainability efforts and regulations must become more realistic since aviation’s stakeholders are concerned that “value creation and prosperity will continue to erode,” the group continued.
“[…] the Green Deal must be reformed to be competition-neutral so that EU airlines are not unilaterally disadvantaged in global competition. Instruments such as a climate protection levy, levied independently of the transfer location, can create a level playing field.”
Lufthansa Group concluded that the past few weeks have shown that “where there is political will, there is a way” to ensure that Germany’s aviation industry continues connecting the country with the rest of the world.
Rytis Beresnevicius
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