Major companies in the Spanish aviation sector have united to form a coordinated front aimed at softening the economic impact of new environmental measures promoted by the European Union and national taxation schemes. The initiative, supported by Brussels and the Spanish Government, targets the airline industry as a key area of reform and reinforcement of business environmental responsibilities.
Led by Antonio Garamendi, chief executive officer of CEOE in Madrid, and backed by senior executives from Iberia, Air Europa, Air Nostrum, easyJet, Iberia Express and other carriers, the coalition has warned of several socioeconomic shocks. They project that the sector could steer much of the country’s economic trajectory, with Spain bearing a heavier burden than many other EU peers. The industry’s influence on national GDP is substantial, exercising a meaningful share that could reach roughly 12.5% of the total, according to their forecasts.
The European Union’s decarbonisation program, known as Fit for 55, seeks to cut CO2 emissions by 55% by 2030 and is shaping environmental rules for aviation. Potential measures include tightening emissions trading schemes and increasing the share of sustainable aviation fuels. The EU also contemplates a new kerosene tax, while Spain has discussed a specific green levy on airline tickets. The Treasury has supported the policy framework, but rolling out certain components has faced delays due to the pandemic.
The Airline Association (ALA), which gathers nearly sixty airlines operating from Spanish airports, stresses that most of the environmental rules will bring added costs to the sector. Yet ALA also acknowledges that these steps could accelerate the industry’s decarbonisation. The group notes that airlines are actively monitoring the new taxes under consideration by both the EU and the Spanish government, anticipating higher ticket prices and potential customer losses. They caution that the measures may not directly advance emissions reductions as intended.
Less tourism, less employment
ALA and the leading carriers have warned about the broader consequences for Spanish tourism, the travel sector, and the economy. A Deloitte study, commissioned by the airlines, outlines projections of how the Fit for 55 package and the proposed ticket taxes could affect multiple economic dimensions in Spain and beyond, including implications for trade with North America and the broader Atlantic tourism market.
According to Deloitte’s report, titled Flying Towards a Sustainable Future, implementing all measures could lead to a decline in international visitors to Spain by around 11 million by 2030. Foreign visitors’ expenditure could fall by about 12.2 billion euros, while Spanish GDP could shrink by about 1.6 percentage points (roughly 23.4 billion euros). The model also projects up to 430,000 jobs lost over the decade, underscoring the interconnected nature of travel, hospitality, and transport sectors.
The report emphasizes that much of the economic impact stems from the anticipated taxation. The fiscal measures are estimated to contribute to a 0.9% drop in GDP and a loss of about 236,000 jobs nationally, compared with roughly 0.7% GDP decline and 194,000 jobs lost due to environmental policies alone. The analysis also notes that the cumulative effect is sensitive to policy design, global travel demand, and currency dynamics affecting international flows to North American markets and across the Atlantic.
“Revenue Effort”
Industry voices argue that participating in environmental policy is essential for reaching net-zero emissions targets by 2050. They state that the sector remains prepared to absorb additional costs if they meaningfully contribute to decarbonisation and are paired with measures that actually reduce emissions. Critics, however, contend that fiscal policies should align with decarbonisation goals rather than simply raising revenue, noting that such approaches can blunt the competitiveness of European air travel relative to North American carriers.
Javier Gándara, president of ALA and a senior executive at easyJet in Spain, remarked that the industry is engaging in environmental actions but stresses the need for common sense in policy design. Antonio Garamendi, president of CEOE, echoed the call for a sustainable transition that includes clear milestones and safeguards for competitiveness. The concern is that overly aggressive fiscal measures could undermine tourism growth and the broader recovery of travel demand in Spain and other markets, including Canada and the United States.
Industry leaders also highlighted Iberia’s experience with the proposed tax regime, warning that if revenue measures persist without demonstrable decarbonisation gains, the democratization of travel could stall. Juan Cierco, Iberia’s Corporate Director, suggested that recent years have seen tourism become more accessible, but sustained fiscal pressure could restrict broader participation in travel, especially for middle-income travelers in North America and Europe alike.
In sum, industry observers in Canada and the United States should monitor how EU and Spanish policies intersect with global aviation dynamics. The balance between environmental progress and economic vitality will shape competitive positioning for North American airlines and European carriers as they navigate evolving regulations and consumer demand.