Airlines Divided Over Scope of Proposed EU Fuel Tax Bill

Passage of the European Union’s proposed bill on energy taxes is getting complicated by a divide between Europe’s airlines over whether to impose a fuel tax only on flights within the bloc, or on all flights.

Low-cost carriers say the current proposal, which limits the scope of a jet fuel tax to intra-EU flights, should also include long-haul flights to ensure fairness between passengers and to cover all potential airline emissions. They argue that focusing on mostly short-haul flights advantages competitors like Lufthansa and Air France, which have substantial long-haul operations that wouldn’t be taxed under the current proposal.

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