Flying generates societal costs that are not fully reflected in the price of an airline ticket. These include climate damage, air pollution, noise pollution, damage to ecosystems and infrastructure costs. When the taxes and charges paid by passengers and airlines fall short of these societal costs, an ‘unpaid bill’ arises. This study examines the extent to which different options for the Dutch aviation tax reduce this shortfall, thereby better reflecting the ‘polluter pays’ principle.
We conclude that current taxes and charges, even when recent policy proposals are taken into account, are insufficient to internalise the external costs of aviation. The greater the flight distance, the larger the gap. The introduction of a distance-based aviation tax from 2027 will improve the balance, particularly for medium-haul flights. The example of a journey to Los Angeles illustrates that the charges levied, even with the additional aviation tax, are negligible compared with the external costs, particularly those associated with climate damage.