IATA calls for reduction in airline taxes to spur aviation growth

The International Air Transport Association (IATA) urged governments to support the vital role aviation plays in connecting people and commerce around the globe.

“Our world has grown much wealthier through trade and travel. Air travel liberates people to live better lives and makes our world a better place,” said Alexandre de Juniac, IATA’s Director General and CEO. In the US, the aviation sector contributes $680.1 billion dollars to GDP and supports 6.2 million jobs. “Aviation is the business of freedom and we must continue to work together to make it so,” said de Juniac.

Looking to the agenda for the Trump Administration, de Juniac called for a reduction in the tax burden on aviation and air travelers, and a new approach to the provision of air traffic services.

“The tax burden needs to be reduced. Airlines for America estimates that taxes account for more than a fifth of the cost of the average domestic ticket. In a country as big, beautiful and full of opportunity as the US, why have a taxation policy that discourages travel? Travel stimulates the economy with tourism dollars and business development. We hope that the Trump Administration will create jobs by dramatically reducing the tax burden on travel,” he said.

“The US Airline Deregulation Act of 1978 unleashed competition and spurred innovation by letting market forces drive commercial decisions. And today consumers benefit from more travel choices than ever. Deregulation has benefited travelers, the US economy and the competitiveness of its airlines. I hope that the Trump Administration will keep that in focus.”