Published on December 15, 2025
By: Rana Pratap
Brazil joins US, Canada, Mexico, Bahamas, Jamaica and More in imposing new aviation taxes, pushing up airfares and travel costs as governments seek additional revenue to fund infrastructure improvements, security upgrades, and economic recovery efforts. As nations seek to develop their aviation industries and make up for post-pandemic deficits, these increases in aviation taxes are starting to spread throughout the world. The outcome? When traveling abroad, there may be less affordable options, increased ticket costs, and additional airport taxes.
As countries continue to raise taxes on air travel, it’s clear that flying is becoming more expensive—and these increases are likely just the beginning. From Latin America to North America, the added costs will affect travellers, especially those with limited budgets. In this article, we’ll break down how these changes will impact top destinations like Brazil, Canada, Mexico, Jamaica, and the Bahamas, and provide you with tips on how to adjust your travel plans in light of the rising costs.
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Brazil is making headlines with its major tax reforms that are set to increase aviation taxes, impacting ticket prices for both domestic and international flights. These changes, part of Brazil’s Constitutional Amendment No. 132, are expected to reshape the air travel tax landscape significantly, affecting travelers’ wallets from 2025 onward.
While Brazil has not imposed a traditional departure tax, its tax reform introduces a VAT-style system (CBS and IBS), which will affect air travel. These changes will apply to air tickets starting 2025–2026, with full implementation by 2027. The CBS and IBS taxes will impact airline ticket sales, meaning higher costs for passengers. Airlines will likely increase ticket prices to absorb these new taxes, making travel more expensive, especially for international flights.
The reform’s progressive rollout means that higher travel costs are inevitable. Expect up to 15% increases in airfares due to these changes. As airlines adjust to the new tax structure, airfares are bound to rise, and additional service fees may be introduced, affecting everything from luggage charges to seat selection fees.
These changes could have a serious impact on Brazil’s tourism sector. As one of Latin America’s largest travel hubs, Brazil’s tax reform is likely to discourage some international visitors due to higher costs. Travellers planning vacations or business trips to Brazil could reconsider their destination if affordable options become limited.
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This shift is also causing concern within the industry. Local businesses, from hotels to tour operators, may face a slowdown in bookings as the overall cost of travel rises. Airlines could reduce the number of flights, especially to price-sensitive markets, if demand drops due to the higher costs of flying.
Brazil offers a rich variety of destinations, each offering distinct experiences. Whether you’re seeking stunning beaches, vibrant culture, or architectural marvels, Brazil has something for every traveller. Here’s a guide to the top 3 cities you can’t miss in Brazil:
The iconic Rio de Janeiro needs no introduction. Known for its breathtaking landscapes and world-famous landmarks, it is a must-visit city for anyone travelling to Brazil.
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São Paulo is Brazil’s economic powerhouse and the country’s largest city, known for its diverse culture, world-class museums, and thriving gastronomic scene.
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Located in the Bahia state, Salvador is known for its rich Afro-Brazilian heritage, historic architecture, and vibrant festivals. The city exudes an atmosphere of colour, music, and culture.
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Brazil’s aviation tax hikes may make travel more expensive, but Rio de Janeiro, São Paulo, and Salvador continue to offer unforgettable experiences. From the stunning beaches of Rio to the cultural richness of Salvador, these cities remain essential destinations on any traveller’s bucket list.
The United States has long been a key player in the aviation tax landscape, but the new aviation taxes imposed in 2025 signal a shift towards higher travel costs. As ticket prices continue to climb, the impact of these new taxes will be felt not only by US travellers but also by international visitors who are making their way to US cities.
In 2025, several aviation taxes will increase in the United States as part of the federal excise tax regime. The Passenger Ticket Tax, Flight Segment Tax, International Facilities Tax, and Passenger Facility Charges (PFCs) are all set to increase. While the increase is modest (ranging from 5% to 7% for some fees), the cumulative effect will mean higher costs for airlines, which will likely be passed on to passengers.
For domestic flights, the Flight Segment Tax will rise from $5.00 to $5.20 per segment, and the Passenger Ticket Tax will remain at 7.5% of the taxable transportation cost. For international flights, the International Facilities Tax will be $22.90 per passenger. These increases come as part of an effort by the Federal Aviation Administration (FAA) to improve airport infrastructure and modernize air traffic control systems.
With the aviation tax hikes, US airlines will face increased operational costs. The pressure will likely fall on consumers, as airlines raise ticket prices and passenger service fees to compensate for the higher taxes. This increase in fares could lead to reduced demand for air travel, particularly among budget-conscious travellers.
For tourism businesses in the US, this tax hike could mean fewer international visitors to major cities like New York, Los Angeles, Chicago, and Miami. Higher airfares could deter foreign travellers, especially those from regions where airfares have already increased due to currency fluctuations and local taxes.
Even with the higher airfares, the United States remains one of the top destinations for international travellers. From the bustling streets of New York City to the sun-drenched beaches of Miami, America’s cities offer something for everyone. Here’s a quick guide to the top 3 cities you can’t miss:
New York City is the ultimate destination for those seeking culture, history, and iconic landmarks. Known as the city that never sleeps, it offers endless entertainment and diverse attractions for all types of travellers.
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From the Hollywood Walk of Fame to the beautiful beaches of Venice, Los Angeles offers something for everyone, whether you’re into films, shopping, or beach relaxation.
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Known for its vibrant nightlife, beautiful beaches, and Latin American influence, Miami is a destination that blends cultures while offering visitors a taste of sun-soaked luxury.
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Despite the higher airfares due to the aviation tax hikes, cities like New York, Los Angeles, and Miami continue to attract millions of travellers from around the world. Whether you’re looking to experience culture, relax on the beach, or dine at world-class restaurants, the United States remains an essential stop for your travel bucket list.
Canada has followed in the footsteps of other countries like Brazil, Mexico, and the US by imposing new aviation taxes. This increase in aviation-related charges is bound to have a direct impact on ticket prices and travel costs, which will affect both domestic travellers and international visitors to Canada. As the cost of travel continues to rise, it’s essential to understand how this will impact your travel plans to Canada.
Canada does not have a classic departure tax like some countries, but it levies various aviation-related charges that effectively function as aviation taxes. These include the Airport Improvement Fee (AIF), which is collected by most Canadian airports to fund infrastructure projects. In 2025, these fees are expected to rise across the country, particularly at major airports like Toronto Pearson, Vancouver International, and Montreal Trudeau.
While Canada’s aviation tax regime is not as aggressive as in some other countries, it still represents a significant cost for travellers. These fees are embedded in ticket prices, which means passengers won’t see them as standalone charges, but the rising costs will still impact the overall price of air travel.
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These increases come as Canada seeks to improve its airport infrastructure and security measures, but they also mean higher costs for international tourists and business travellers flying in and out of the country.
As aviation taxes rise, airlines and tourism businesses in Canada are likely to feel the pressure. For international travellers, higher ticket prices could make Canada less competitive compared to destinations with lower flight costs.
The local tourism market may also feel the squeeze, as higher flight costs could deter visitors from more price-sensitive regions, particularly those coming from Europe, Asia, and South America. If airfares continue to rise, tourists might opt for more affordable destinations, leaving Canadian cities vulnerable to a decline in tourism revenue.
On the other hand, the increased taxes will likely provide additional revenue for airports to improve their facilities and passenger services, which could enhance the overall travel experience in the long term.
Canada remains a top destination for travellers, with its beautiful natural landscapes, vibrant cities, and rich culture. Whether you’re looking to explore cosmopolitan cities, outdoor adventures, or historical sites, Canada has something for every kind of traveller. Here’s a guide to the top 3 cities in Canada that are unmissable despite the rising travel costs.
As Canada’s largest city, Toronto is the cultural and economic hub of the country. Known for its diverse neighbourhoods, iconic skyline, and world-class attractions, Toronto offers something for everyone.
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Known for its breathtaking natural beauty and outdoor lifestyle, Vancouver is a city where mountains meet the sea. It’s a paradise for those who love hiking, biking, and exploring nature, yet it offers all the urban comforts you could want.
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A city with a unique European flair, Montreal is known for its French influence, vibrant arts scene, and delicious food. As the cultural capital of Quebec, Montreal offers a mix of old-world charm and modern cosmopolitan life.
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Canada remains one of the top destinations for travellers despite the rising aviation taxes. Whether you’re heading to Toronto for its cultural vibrance, to Vancouver for nature’s beauty, or to Montreal for its European charm, Canada offers unforgettable experiences that justify the increased costs of travel.
Mexico, a major travel hub in North America, has followed in the footsteps of countries like Brazil, Canada, and the US by imposing new aviation taxes that will increase travel costs for passengers. As the travel industry continues to recover from the pandemic, these new taxes could have far-reaching implications for both tourism and business travel.
Mexico has long imposed various taxes and fees on air travel, but in 2025, the country introduced a new aviation tax framework that will significantly increase the cost of flying in and out of Mexico. These taxes apply not only to domestic flights but also to international travel, making Mexico one of the most expensive destinations in Latin America for air travel.
The new taxes are part of a broader strategy to fund infrastructure development, airport upgrades, and security measures. The government has justified the increase as a necessary step to improve the aviation sector. However, the move has raised concerns about the impact on travellers, particularly those flying to Mexico for leisure.
Mexico is one of the most visited countries in the world, attracting millions of tourists every year. However, with higher airfares driven by the new aviation taxes, the cost of visiting Mexico could become a barrier for some travellers. According to experts, tourists will face significant price increases, especially when flying from North America, where airlines may pass the additional costs onto passengers.
For tourism businesses in Mexico, this could mean fewer visitors in key regions like Cancún, Riviera Maya, and Mexico City. With higher flight costs, tourism revenues may decline, particularly from budget-conscious travellers. This will also put pressure on local businesses in popular destinations to raise prices on accommodation, tours, and other travel services.
Despite the tax increases, Mexico City remains one of the most exciting destinations in the world. As the capital, it’s not only a political and cultural hub but also a city with unlimited attractions and endless possibilities for adventure and discovery.
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The Caribbean coast of Mexico, particularly Cancún, remains one of the most popular tourist destinations, famous for its beautiful beaches and luxury resorts. However, with the recent aviation tax hikes, visiting Cancún might become more expensive for those flying in from abroad.
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Puerto Vallarta, located on Mexico’s Pacific Coast, is known for its beautiful beaches, luxurious resorts, and charming old town. This coastal paradise offers a more relaxed atmosphere than the more tourist-heavy spots like Cancún and Riviera Maya.
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Mexico’s aviation tax increases may push travel costs higher, but Mexico City, Cancún, and Puerto Vallarta remain unmissable destinations for those seeking adventure, culture, and relaxation. Whether exploring the rich history of Mexico City, unwinding on the beaches of Cancún, or enjoying the coastal charm of Puerto Vallarta, Mexico continues to offer experiences that make it a top destination despite the rising costs.
As global aviation taxes continue to rise, The Bahamas is the latest country to join the ranks of Canada, the US, Brazil, Mexico, and Jamaica in imposing new aviation taxes. This move is expected to drive travel costs higher, especially for tourists flying in for vacations or business. As one of the most popular Caribbean destinations, The Bahamas has become more expensive for air travel, leaving many potential travellers wondering about the costs of visiting this tropical paradise.
The Bahamas has always had aviation-related taxes built into ticket prices, but 2025 marks a significant increase in these taxes. The departure tax for international travellers flying out of the Bahamas is expected to increase by around US$5-10 per person. The additional taxes are designed to help fund airport improvements, tourism infrastructure, and security enhancements.
Though the increase may seem modest, the rising travel costs will add up for families, business travellers, and tourists planning multiple trips. When you factor in the higher airfares combined with the cost of accommodation, activities, and other travel-related expenses, the Bahamas could become more expensive than ever for international visitors.
As one of the top tourism destinations in the Caribbean, The Bahamas is heavily reliant on international visitors. With more expensive flights, the travel industry in the Bahamas could experience a slowdown in visitor numbers, especially from budget-conscious tourists from North America and Europe. The increase in aviation taxes may push tourists towards more affordable destinations in the Caribbean or Mexico, which may offer lower flight costs or more competitive tax rates.
For local businesses, the tax hikes could lead to fewer bookings and lower revenues, particularly in the off-peak travel seasons. Hotels, tour operators, and restaurants might see a decline in demand if visitors are forced to adjust their budgets due to rising airfares.
Despite the aviation tax hikes, Nassau, the capital of the Bahamas, remains one of the most visited cities in the Caribbean, drawing travellers from all over the world. Known for its luxury resorts, beautiful beaches, and colourful culture, Nassau offers an unparalleled Caribbean experience.
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Grand Bahama Island offers an alternative to the luxury of Nassau, with natural beauty, adventure activities, and remote beaches that attract those looking for a more relaxed pace. From kayaking to nature walks, Grand Bahama is perfect for those seeking an outdoor escape.
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For those seeking a more quiet and secluded destination, Bimini, located just 50 miles from Miami, offers an escape from the more crowded tourist areas. Known for its pristine beaches and legendary fishing spots, Bimini is a paradise for those looking to unwind.
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Despite the aviation tax hikes, the Bahamas remains a top Caribbean destination for those seeking luxury and relaxation. Whether you’re visiting the vibrant Nassau, secluded Grand Bahama, or peaceful Bimini, the Bahamas continues to offer world-class experiences that make it a must-visit location in the Caribbean.
Jamaica, known for its stunning beaches, vibrant culture, and rich history, has joined a growing list of countries—including Canada, the US, Brazil, Mexico, and the Bahamas—in imposing new aviation taxes. These changes are set to increase travel costs, with higher airfares impacting both international visitors and domestic travellers planning to fly to this popular Caribbean destination.
In 2025, Jamaica introduced new aviation taxes that will raise the cost of flying to and from the island. The departure tax for international flights is set to increase by US$10 per person, adding extra costs to travellers’ airfares. While the tax increase may seem small, it contributes to the rising overall cost of travel.
The additional tax revenue will be used to fund airport improvements, tourism infrastructure, and security upgrades, aimed at enhancing the visitor experience in Jamaica. However, for budget-conscious travellers, this rise in aviation taxes could make the island less affordable, especially when combined with the general increase in airfare prices from other countries.
Jamaica is one of the Caribbean’s top destinations, attracting millions of visitors every year, primarily from North America and Europe. However, with rising travel costs, tourism businesses in Jamaica could feel the pressure as fewer visitors may opt for the island if they can find cheaper destinations elsewhere in the Caribbean or Mexico.
For local businesses, including hotels, restaurants, and tour operators, the new aviation taxes might lead to fewer bookings and lower tourism revenue. Airlines may also need to adjust their routes or increase ticket prices to absorb the new costs, potentially affecting flight availability to the island.
Despite the higher airfares, Jamaica remains one of the best Caribbean destinations for travellers seeking culture, nature, and relaxation. Here’s a guide to the top 3 cities in Jamaica that are unmissable, even with the rising costs.
Montego Bay is Jamaica’s tourism capital, offering everything from luxury resorts to vibrant nightlife. Known for its beautiful beaches and bustling atmosphere, MoBay offers a mix of relaxation and adventure, making it perfect for all kinds of travellers.
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As Jamaica’s capital city, Kingston is the country’s cultural and artistic heart. Known for its music scene, rich history, and vibrant arts, Kingston offers a unique experience for those interested in exploring the roots of reggae and Jamaican heritage.
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For those seeking relaxation in paradise, Negril is the place to be. Known for its seven-mile beach, stunning sunsets, and laid-back vibe, Negril is perfect for those looking to unwind and experience the natural beauty of Jamaica.
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Despite the aviation tax increases, Jamaica remains one of the most vibrant and beautiful destinations in the Caribbean. Whether you’re soaking up the sun in Montego Bay, diving into Kingston’s music culture, or relaxing on the beaches of Negril, Jamaica continues to offer a rich blend of culture, adventure, and luxury for visitors to enjoy.
Brazil joins US, Canada, Mexico, Bahamas, Jamaica and More in raising aviation taxes, which will make flying more expensive as governments look for ways to fund airport improvements and economic recovery. These tax hikes will lead to higher ticket prices and additional fees, affecting travellers’ budgets worldwide.
As aviation taxes rise across Brazil, Canada, the US, Mexico, the Bahamas, Jamaica, and other popular destinations, travellers are facing higher ticket prices and additional fees. While these increases are part of efforts to fund crucial airport upgrades, security improvements, and economic recovery, the impact will be felt across the travel industry. For those planning trips, it’s essential to stay informed, book early, and explore budget-friendly options. Though the rising costs may cause some to reconsider their travel plans, these destinations remain rich in culture, history, and natural beauty, offering unforgettable experiences worth the investment. With careful planning and flexibility, travellers can still enjoy these incredible locations while managing the increasing costs of air travel.
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Tags: aviation taxes, brazil, Canada, mexico, US
Monday, December 15, 2025
Monday, December 15, 2025
Monday, December 15, 2025
Monday, December 15, 2025
Monday, December 15, 2025
Monday, December 15, 2025
Monday, December 15, 2025