IATA’s Disappointment Over GSLTF Recommendations
The International Air Transport Association (IATA) has voiced strong dissatisfaction with the Global Solidarity Levies Task Force (GSLTF)’s proposal to target air transportation for new levies. The GSLTF claims its aim is to enhance domestic revenue in developing nations and promote international solidarity, particularly surrounding climate change and other challenges.

IATA highlighted several critical flaws in the GSLTF’s proposition:

• Profit Margins: The airline industry operates with a thin profit margin—estimated at 3.4% for 2024—making the suggested premium flyer levy, projected to generate around EUR 78 billion annually, unrealistic.
• Commitment to Sustainability: Airlines are committed to achieving net zero carbon emissions by 2050, a process expected to cost USD 4.7 trillion, questioning the effectiveness of increased aviation taxes.
• Existing Climate Mechanisms: The proposal neglects existing frameworks like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which aims to manage and offset emissions in a cohesive manner.
• Economic Impact: The GSLTF has failed to gauge the economic repercussions for the states it intends to benefit from the proposed tax.

IATA’s Director-General, Willie Walsh, emphasized that the airline industry is an economic driver rather than a source of excess revenue. Walsh noted, “Governments may not recognize that these recommendations could harm air travel affordability and diminish the economic support that aviation provides to numerous countries.”

Surveys indicate widespread public skepticism towards air travel taxes, with many believing that such levies serve more to enrich government coffers than to aid in climate change initiatives.