French airport and highway operators lose over €2B in value amid tax hike concerns

Highway operators: French highway operators run toll-road concessions and collect revenue under long-term agreements with the state. They are relevant because the proposed tax increase targets motorway concessionaires, while restrictions on passing the added cost through to tolls could place further pressure on concession earnings. French airport operators: French airport operators manage and develop major airports and typically earn revenue from passenger services, commercial activities, and airport charges. They are relevant because the French government is proposing a substantially higher tax on large airport operators, raising concerns about profitability and contributing to a decline in related shares. Tax proposal: France is proposing to increase the tax on long-distance transport infrastructure operators progressively, with the highest rate applying to the most profitable companies. Budget impact: The measure is intended to raise substantial additional annual revenue as part of France's budget discussions. Cost pass-through: Motorway operators may be prevented from offsetting the higher tax through increased toll prices, whereas airport operators generally have more flexibility to adjust charges.