German government to cut aviation tax, Lufthansa shares rise

Investing.com -- Lufthansa shares rose Thursday afternoon following the German government’s announcement that it will cut the country’s aviation tax by July 2026.

The tax reduction will effectively reverse the increase that was implemented by the previous administration in 2024.

According to the German chancellor, this measure will reduce the tax burden for the German aviation industry by €350 million.

For Lufthansa specifically, the benefit might amount to approximately €110 million.

In addition to the tax cut, the German government plans to cap air traffic control (ATC) costs at current levels, with the possibility of slightly reducing them in 2026. This comes as a positive development for airlines, as ATC costs were previously expected to increase next year.

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