The German aviation industry is grappling with a significant crisis as escalating regulatory costs weigh heavily on the sector. According to the German Aviation Association (BDL), government-imposed costs have more than doubled since 2019. In 2025 alone, the financial burden is projected to rise by €1.1 billion, reaching a staggering €4.4 billion.
Government Action Urgently Needed
BDL President Jens Bischof sounded the alarm, stating, “More and more airlines are leaving Germany. Given this concerning trend, it is crucial that the federal government prioritizes the crisis facing Germany as a hub for air traffic.” The association’s data reveals a sharp decline in point-to-point airlines based in Germany, dropping from 190 in 2019 to just 130 in 2025. This contraction has led to the loss of approximately 10,000 jobs and an annual economic value reduction of €4 billion.
Airlines Relocating Fleets Abroad
The rising cost environment has prompted many airlines to shift their fleets to more cost-competitive European countries. Bischof highlighted the widespread impact, noting, “We see the consequences at almost every airport in Germany.” Airports in countries with lower operational costs are increasingly becoming preferred hubs.
Industry Calls for Tax and Fee Reductions
The BDL has identified the reversal of the air traffic tax hike implemented in May 2024 as a critical measure for recovery. However, critics have pointed out that the new coalition government has yet to fulfill its pre-election commitment to reduce taxes, leaving the industry in limbo.
Air Cargo Sector Feeling the Pressure
The air cargo sector is particularly vulnerable to the high-cost environment. At major German airports like Frankfurt, Leipzig/Halle, Cologne/Bonn, and Munich, the take-off fee for a B777 cargo aircraft stands at €1,481. In stark contrast, fees are significantly lower at competing hubs such as Brussels (€938), Paris-CDG (€807), Milan (€716), and Istanbul (€72). This cost disparity is driving cargo carriers to relocate operations to more affordable locations.
Warnings from Industry Leaders
Lufthansa Cargo has issued a stark warning, stating that high costs are jeopardizing global connectivity and urging immediate action to protect jobs. Similarly, Fraport CEO Stefan Schulte criticized the federal government for failing to include promised cost reductions in its 2026 budget, cautioning that “The competitiveness of German airports is rapidly eroding.”
Cautious Optimism Amid Challenges
Despite the challenges, there are glimmers of hope. Cargo traffic at Frankfurt Airport grew by 3.7% in July, with the Asia-Pacific route showing continued strength. However, declines were noted on North American and Middle Eastern routes. A Fraport spokesperson expressed “moderate optimism” for the second half of 2025, while emphasizing the need to monitor geopolitical risks closely.