Suspension Follows French Parliament’s Rejection of Tax Hike

Air France has announced the suspension of a planned increase in France’s Airline Ticket Solidarity Tax (TSBA) after the proposal was rejected by the French parliament.

The threefold increase, intended to take effect in 2025, was part of a foiled budget proposal that contributed to Prime Minister Michel Barnier’s administration resignation.

The proposed TSBA increases were substantial. Economy passengers on domestic and intra-European flights faced a rise in tax charges from €2.60 to €9.50 per ticket. Long-haul economy and premium fares would have jumped from €7.40 to €40, while business class passengers on the same routes faced a hike from €63.07 to €120. To account for these changes, Air France tacked the tax charges on to customers for trips on and after January 1, 2025.

“Having to pay an uncollected tax to the French government would represent a loss of several tens of millions of euros... to avoid this situation, on 24 October 2024 the Air France KLM Group decided to pass on this increase in advance on tickets sold for travel from 1 January 2025, without waiting for the final finance bill to be passed,” the airline stated.

The plan triggered widespread strikes by French air transport unions last month.

However, as of December 7, Air France has reverted to charging 2024 rates for new ticket sales. Customers who were charged the higher 2025 rates will be refunded the difference.

“Air France made a commitment to make adjustments to ensure that the amount collected is equal to the amount actually due in respect of the TSBA, in the event of a change to the scale, or if the amendment was abandoned or rejected,” the airline assured in a statement. “This commitment will be honored.”

Air France outlined refund procedures, stating that passengers who booked directly through its website could request refunds starting December 12. Those who purchased tickets through third-party agencies were advised to contact their point of sale.

“Refunds will be prioritized according to the customer's departure date,” added Air France.

FMI: www.airfrance.us