[flakeoil]

You can do whatever calculations and speculations you want, but the fact is that airlines do not pay any tax on fuel and no VAT on fuel. Not sure why they should not.

Another thing with flying is that it is so easy to go long distances as it takes limited time. A trip London-Barcelona is a 1.5-2 day trip one-way by car. You think twice before doing that. An intercontinental trip London-Bangkok is impossible by car, but creates more CO2 than all energy one person uses in a year (heating, cooking, going by car to work etc). Dirt cheap and in the blink of an eye.

[HWR_14]

> that airlines do not pay any tax on fuel and no VAT on fuel. Not sure why they should not.

What a weird rule. In the US they do.

Although some of that might go back to attempts made early in aviation to handle the import taxes of airplanes landing with a half full gas tank.

[flakeoil]

If you look into the details, in the US, aviation fuel is taxed very low and for international flights not taxed at all.

"Kerosene-based jet fuel used for commercial aviation (transporting persons or property for hire) is taxed at a reduced rate of 4.4 cents per gallon." [0] That is $0.044 per galon.

For cars the tax is between $0.31-$0.74 per gallon depending on state + federal tax of $0.184 so in total somewhere between $0.494-$0.924.

That means aviation fuel is taxed 1/10-1/20 of what car fuel is taxed. So in essence aviation fuel is barely taxed.

For international flights it is tax free: "The tax code provides statutory exemptions that result in zero or near-zero tax liability for specific fuel uses. Exemptions generally apply to fuel used in foreign international flights, military aircraft, governmental entities, farming, or by nonprofit educational organizations." [0]

[0] https://legalclarity.org/federal-jet-fuel-tax-rates-exemptio...