Air France stock market announcement:Air France falls on the stock market following the announcement of a new tax on airline tickets.

Air France sees the price of its action fall on the stock market, while the airline industry will be subject to a new tax. The Minister of Transport, Elisabeth Borne, has indeed announced the establishment of an eco-contribution from 2020 on all flights from France. "It will be progressive and will represent a contribution of 1.50 euro per ticket on a domestic or intra-European flight in economy class and will be able to go up to 18 euros on a non-European flight in business class", she said. said Tuesday at the exit of an ecological defense council at the Elysee.

This tax will not apply to connecting flights, domestic flights departing from and / or to Corsica, Outremer or "planning links". This eco-contribution should represent an amount of 180 million euros levied on air transport from 2020. An amount that will be "fully allocated to the financing of daily transport," said the minister.

Air France stock market announcement

Following this announcement, the value of Air France suddenly plunged to the Paris Bourse, giving up 4.5%, before recovering a little. At 12:43, however, the title lost 3.01%, to 8.62 euros.

Air carriers are generally experiencing turbulence on the European markets following the announcement of this measure, which will be discussed in the context of the draft budget law. For example, Lufthansa shares fell by 2.76% at 3:46 pm on the Frankfurt Stock Exchange, while EasyJet saw its value drop by 4.41%.
'An additional cost of more than 60 M € per year'

Present alongside Elisabeth Borne, the minister of Ecological and Solidarity Transition, François de Rugy reaffirmed France's intention to continue "the battle on a European and global scale" for "that air transport contributes more to efforts to combat the greenhouse effect ".

The airline Air France has for its part expressed its opposition to the project of eco-contribution. "This tax would represent an extra cost of more than 60 million euros per year for the group," she said in a statement. Management believes that this measure would be "extremely penalizing for Air France, 50% of whose business is carried out from France, and in particular for its domestic network whose losses have reached more than 180 million euros in 2018" .