IATA called the recommendations “misguided” and warned of severe unintended consequences if the levy were implemented.

Unsustainable Financial Burden

One of IATA’s chief criticisms is the unrealistic financial expectation placed on the aviation industry. The GSLTF suggests that a premium flyer levy could generate EUR 78 billion (over USD 90 billion) annually—almost three times the airline industry’s projected global profit of USD 32.4 billion for 2024. With an average net profit margin of just 3.4%, airlines simply do not operate with the kind of surpluses such a proposal assumes.

“The airline industry is an economic catalyst, not a cash cow,” said Willie Walsh, IATA’s Director General. “Yet governments casually suggest a tax on flyers without considering the real-world consequences.”

Threat to Sustainability Goals

IATA emphasised the industry’s existing USD 4.7 trillion commitment to achieving net zero carbon emissions by 2050. Levying additional taxes would significantly limit the industry’s capacity to invest in long-term sustainability solutions such as Sustainable Aviation Fuel (SAF), advanced aircraft technology, and more efficient operations.

Overlapping Policy Risks

The GSLTF’s proposal also overlooks the globally adopted Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). As the first global, sector-specific mechanism to tackle carbon emissions, CORSIA was agreed upon by the very states now supporting the new levy. IATA warns that the proposed Solidarity Levy would undermine CORSIA, fragmenting efforts and reducing policy effectiveness.

Negative Economic and Connectivity Impacts

The levy could also disrupt route economics, especially premium travel segments that underpin many international routes. This, IATA says, would increase travel costs across the board, diminish connectivity, and ultimately hurt the very developing countries the levy aims to help.

“There’s no assessment of how the funds would be used or the economic damage such a levy would cause,” added Walsh. “The bottom line is clear: the GSLTF’s recommendations will increase travel costs and do more harm than good.”

Public Sentiment Against Aviation Taxes

Global consumer research conducted for IATA by Savanta reveals strong public resistance to further air travel taxation:

• 79% say there are already too many taxes on flying.
• 78% believe taxation is not the solution to aviation sustainability.
• Only 9% support taxation as a method to offset carbon emissions, favouring SAF (25%) and green technology investments (23%).

Aviation as a Driver of Development

IATA concluded that air transport plays a vital role in connecting economies, enabling tourism, trade, and social mobility. The association calls on governments to support the sector’s green transition, not hamper it with ill-conceived taxation.

“The last thing this industry needs is a USD 90 billion gut punch of a tax,” Walsh stated. “If solidarity is the goal, supporting SAF production and sustainable technology is the right path.”