The Government Introduces Passenger Taxes to Promote Sustainable Aviation

From 2025, both domestic and international flights will be subject to a passenger tax, according to a new law proposal from the government. With this proposal, Denmark is taking a significant step towards a greener future by introducing new passenger taxes on air travel. Following the example of several other countries like Sweden, Norway, and Germany, Denmark aims to address environmental concerns associated with air travel while generating revenue to support sustainable initiatives.

Development and purchase of sustainable aviation fuels

About half of the passenger tax is intended to support the aviation industry in transitioning to a greener future through the development and purchase of sustainable aviation fuels. Additionally, approximately half of the revenue from the new tax is earmarked for increasing pension payments for the elderly.

The latter purpose has been subject to heavy criticism as the link between an aviation passenger tax and a national public benefit earmarked for a specific group of people in the population is hard to understand. Right now, the proposal is being processed in Parliament.

How does the air travel tax look like in practice?

The tax rates will vary based on the length of the journey, with an average of DKK 100 by 2030. The tax will apply to all passengers, however, not those transiting through a Danish airport.

The new passenger tax will be gradually introduced from 2025. In 2030, a specific journey is expected to be subject to the tax as follows:

• The passenger tax for a journey within Europe will be approximately DKK 60.
• The passenger tax for medium-length journeys, such as to New York, will be around DKK 240.
• The passenger tax for long journeys, for example to Bangkok, will be approximately DKK 390.

The government plans to evaluate the passenger tax amounts in 2027.

If you have any questions about the new rules or any other aviation law questions, feel free to reach out to Partner, Attorney Michael Møller Nielsen, Christoffer Sidelmann Borg, Anna Lindencrone Lundin or Linea Conforti whom continuously assist international airline carriers in legal issues related to Danish law including lean processing of EU261 cases.