Policymakers should be moved by facts, not fiction: IATA DG on international aviation taxation

Debunking arguments that international aviation is not taxed, global grouping IATA on Monday said that an analysis of almost seven billion international flight tickets has shown that airlines have paid more than $380 billion in taxes and charges.

The International Air Transport Association (IATA) is a grouping of more than 300 airlines, including various Indian carriers.

Addressing the IATA Annual General Meeting (AGM) here, its Director General Willie Walsh said the argument that international aviation is not taxed does not hold water.

"We analysed data from almost 7 billion tickets for international flights going back to 2018, which showed that airlines have paid over $380 billion in taxes and charges, which added over 33 per cent to the price of a ticket.

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"And if we include domestic flights, that figure of $380 billion rises to half a trillion US dollars. It's important that policymakers are moved by facts, not fiction and it's heartening that 75 per cent of travellers see green taxes for what they are -- nothing more than government greenwashing!" Walsh said.

The airline industry is turning profitable after being severely impacted by the coronavirus pandemic while profit margins continue to be thin.

"With $803 billion in revenues, airlines will share $9.8 billion in net profit this year. Put another way, airlines will make, on average, $2.25 per passenger. So, the value retained by airlines for the average plane trip won't even buy a subway ticket in NYC.

"Clearly that level of profitability is not sustainable. But considering we lost $76 per passenger in 2020, the velocity of the recovery is strong," he said.

According to him, there are the challenges of inflation, acute cost pressure and in some places, there is a shortage of labour.