IATA Strongly Challenges Premium Flyers Solidarity Tax, Vows to Uphold Aviation Industry’s Commitment to Climate Leadership Through CORSIA and Innovative Sustainable Solutions

Published on November 20, 2025

IATA has strongly opposed the implementation of the Premium Flyers Solidarity Tax, arguing that it could undermine the aviation industry’s ongoing efforts to lead in climate action. The global aviation body emphasized its unwavering commitment to sustainability, asserting that the industry’s progress through CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and other innovative green initiatives would continue to be a priority. IATA’s response highlights the need for solutions that support long-term environmental goals without disproportionately burdening premium passengers or hindering the sector’s recovery.

The International Air Transport Association (IATA) has strongly rejected the Premium Flyers Solidarity Coalition Declaration, arguing that the proposed tax on air travelers lacks adequate analysis of its potential negative effects on the very countries it seeks to support.

While the intention to mobilize climate finance is commendable, the method suggested—imposing additional taxes on airline passengers, particularly those flying in premium classes—has several significant flaws. In theory, such taxes may seem like an effective way to generate funds for climate-related projects. However, in practice, they do not directly contribute to emissions reductions. Rather than having a beneficial impact on the environment, these levies are likely to lead to unintended consequences, particularly for developing economies and small island states that rely heavily on air travel.

Airlines and aviation play a critical role in global connectivity, supporting the economic growth of both developed and developing nations. The proposed taxes threaten to undermine this connectivity. Increased taxation on air travel would make it more expensive for people to fly, particularly in premium classes, which could discourage long-distance travel. For many regions, especially smaller nations and remote island communities, air travel is often the only viable means of access to the wider world. In this context, taxing air travel more heavily could stifle economic opportunities, restrict access to international markets, and reduce the flow of tourists—factors that are all critical to sustaining economic growth in these regions.

Moreover, the introduction of such taxes could distort market competition. Airlines that depend on premium passengers for a significant portion of their revenue could see their customer base shrink, leading to decreased revenues. This, in turn, might reduce the quality of services provided and discourage further investment in the aviation sector. These ripple effects could further destabilize the regions that are most reliant on aviation for their economic and social well-being.

The IATA also stresses that the aviation industry is already playing a pivotal role in climate action, with real, measurable results in both climate finance and emissions reductions. Aviation has significantly reduced its carbon intensity over the years, and the sector is committed to achieving further reductions. A key initiative in this effort is the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which was adopted by all member states of the International Civil Aviation Organization (ICAO). CORSIA is the only global market-based measure designed specifically to address CO2 emissions in international aviation. As the sole international framework for reducing emissions in any industrial sector, it has established a robust and legitimate carbon market for aviation emissions.

Under CORSIA, airlines are committed to offsetting their CO2 emissions by purchasing high-quality carbon credits from sustainable projects. The scheme is designed to channel climate finance directly into developing economies by supporting projects that help reduce emissions in those countries. Over the period from 2024 to 2035, airlines are expected to offset more than a billion tonnes of CO2, which is expected to be accompanied by investments in the range of $30 billion to $60 billion.

The effectiveness of CORSIA in tackling aviation’s contribution to global emissions is critical for the broader success of the aviation industry in reducing its environmental impact. During the ICAO Assembly, governments reaffirmed CORSIA’s exclusive role in global aviation climate policy and cautioned against the proliferation of national or regional measures that would overlap with or duplicate the scheme. Such measures could lead to double taxation, creating unnecessary financial burdens for airlines and passengers. They would also risk undermining the coherence of global climate policy, making it more difficult to achieve collective goals. The introduction of levies such as the Premium Flyers Solidarity tax would not only disrupt the operational efficiency of the sector but would also distort international agreements designed to create a unified approach to carbon emissions.

Furthermore, the introduction of overlapping taxes like the Premium Flyers Solidarity levy could undermine the effectiveness of CORSIA by diverting resources that could otherwise be used to fund the carbon offsetting efforts. The levy could create regulatory confusion and further complicate the already complex landscape of global aviation regulations. Airlines, which are already committed to following a stringent and coordinated emissions-reduction plan through CORSIA, could find themselves facing additional costs and logistical challenges if more taxes are imposed at the national or regional level. This, in turn, could lead to fewer resources being directed toward efforts to combat climate change, hampering the industry’s overall progress.

IATA’s position highlights that while addressing climate change is of paramount importance, it is essential to implement solutions that are both effective and equitable. Aviation has made significant strides toward sustainability, and the industry continues to explore innovative solutions, such as sustainable aviation fuels and next-generation aircraft technologies. The development of new taxes or regulations that undermine the progress already made would only complicate these efforts and create unnecessary challenges for the industry.

The global aviation industry has demonstrated its commitment to reducing its environmental impact. By continuing to work within established frameworks such as CORSIA, the sector can play a significant role in addressing climate change without jeopardizing the economic and social benefits that aviation provides. The introduction of duplicative taxes on premium air travel would not only undermine this progress but could also lead to economic harm for the regions most dependent on aviation as a means of connectivity and economic development.

IATA has strongly opposed the Premium Flyers Solidarity Tax, stating that it could hinder the aviation industry’s climate leadership, which is driven by initiatives like CORSIA and sustainable solutions.

while the intentions behind the Premium Flyers Solidarity Coalition Declaration may be well-meaning, it overlooks the broader, more effective efforts already underway in the aviation industry. The focus should remain on supporting these global initiatives, such as CORSIA, that align with the collective goals of reducing emissions and promoting sustainable development without imposing unnecessary financial burdens on travelers or airlines.