Geneva - The International Air Transport Association (IATA) expressed its deep disappointment at the recommendation of the Global Solidarity Levies Task Force (GSLTF) to target air transportation in its aim to “improve domestic revenue mobilization of developing countries and support international solidarity (in particular with regards to climate change mitigation and adaptation, pandemics and other development challenges).”
An initial assessment of the GSLTF’s proposals reveals severe deficiencies, including that:
• A Competitive Airline Industry Does Not Generate Excessive Profits: The GSLTF announcement, while lacking any meaningful detail, quotes a CE Delft estimation that a premium flyer levy could generate EUR 78 billion (over USD 90 billion) per year. That is approximately three times the airline industry’s global estimated profit of USD 32.4 billion in 2024. Airlines’ structurally thin net profit margin (estimated at an average of 3.4% industrywide for 2024 and approximately half the global average for all industries) must also be considered in any policy deliberation. (....)