Geneva — The International Air Transport Association (IATA) dismissed the Premium Flyers Solidarity Coalition Declaration, emphasizing that the proposed tax on air travelers lacks any credible analysis of the negative effects it may have on the countries it aims to support.
The ambition to mobilize climate finance is commendable. However, the means proposed—new taxes on airline passengers, particularly those flying premium class—are fundamentally flawed. In practice, these levies don't directly lead to emissions reductions, and risk counterproductive effects for developing economies and small island states. Increased taxation on air travel threatens connectivity, distorts competition, and ultimately undermines social and economic development in the regions most reliant on aviation as a lifeline.
"What developing countries need is strong air connectivity supplied by an airline sector supported by governments to deliver sustainable growth. That means clear, consistent, globally-agreed policies—not more taxes that will undermine connectivity. The airline industry is an economic catalyst, not a cash cow. Aviation is committed to net zero carbon emissions by 2050 and is set to contribute more than $100 billion in climate finance through CORSIA, the internationally agreed carbon offsetting and reduction scheme. Let's build on what works—not sabotage it," said Willie Walsh, IATA's Director General.
Aviation is already mobilized and delivering concrete results for climate finance, emissions reductions, and reducing the industry's carbon intensity. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted by all 193 Member States of the International Civil Aviation Organization (ICAO), is not only the sole global market-based measure for international aviation—it is the only global scheme in existence to manage CO2 emissions from any industrial sector. CORSIA has established a robust, legitimate carbon market that channels climate finance directly to developing economies through the purchase of high-quality carbon credits. Between 2024 and 2035, airlines are expected to offset up over a billion tonnes of CO2, with investments of $30 to $60 billion.
At the ICAO Assembly last month, governments reaffirmed CORSIA's exclusive role and warned against the proliferation of duplicative national or regional measures that would lead to double charging and undermine climate policy coherence. Overlapping levies such as the Premium Flyers Solidarity levy not only violate this consensus but also risk undermining the effectiveness of CORSIA by diverting resources and creating regulatory confusion.
"What is missing from the picture is not more taxes, but action from governments to release CORSIA credits, and to support production of Sustainable Aviation Fuels. Action on those two fronts is urgent. The first will cut emissions and release more climate finance for developing nations, and the second will ultimately lead to the decarbonization of air transport," said Walsh.
