Air tax will cut revenue by €480m and slash 3,000 jobs, says report

THE controversial air travel tax will cut revenue by up to €480 million and result in up to 3,000 direct job losses, an expert aviation body has predicted.

A report commissioned by Ryanair, Aer Lingus and Cityjet said these losses compared with an estimated €116m likely to be generated by the tax.

Amsterdam Aviation Economics (AAE) said there would be an additional cost of about €50m in terms of reduced income tax and increased social welfare payments from those made unemployed.