Air France says planned French eco-tax would be 'extremely penalizing'

PARIS (Reuters) - French carrier Air France AIRF.PA said on Tuesday it was against the government's plan to introduce an ecological tax on air transport, saying the measure would significantly penalize its competitiveness.

The government announced earlier on Tuesday that it will introduce the eco-tax on airlines flying out of France, which is expected to raise around 180 million euros ($201.69 million) from 2020. Airline shares fell across the board following the news.

“This tax would represent an additional cost of over 60 million euros per year for the Air France group,” the company said in a statement.

It said 50% of its flights were operated out of France, notably for its domestic network, where losses amounted to over 180 million euros in 2018.

Reporting by Bate Felix, Editing by Sarah White