Possible air transport tax would be 'disaster' for France, industry says

A possible tax on air transport would be disastrous for the French economy, according to airline industry groups.

Prime Minister Michel Barnier's government has announced targeted tax hikes to shore up France's finances, with the country facing a shortfall of about 60 billion euros ($66 billion).

The government has not detailed a plan to tax air transport specifically, but French media reports said earlier this week such a move was under consideration.

"If these tax proposals are implemented it will be a disaster for France. You cannot tax yourself to prosperity," the International Air Transport Association said in a statement.

A4E and ACI, industry groups representing European airlines and airports, have also urged the French government to reconsider and warned any tax increases would jeopardise investment in decarbonisation efforts.

"Raising aviation taxes is the poster child of short-term thinking in politics. If confirmed, this new plan would inadvertently weaken the competitiveness of French aviation, penalise citizens and, ultimately reduce the sector's economic contribution," said ACI Europe Director General Olivier Jankovec.

The index for European travel stocks, including Ryanair, Lufthansa and easyJet, was down on Thursday.