A report into the effect of air passenger duty (APD) on Scottish airports has prompted calls for a route development fund.
The study, commissioned by Aberdeen, Edinburgh and Glasgow airports, estimates the most recent hike in APD will cost them 1.2 million passengers over the next three years.
APD rose to £12 on short-haul routes last November, while passengers on longer routes now pay up to £170 per flight.
When it started in 1994, APD was charged at a rate of £5 for European destinations and £20 elsewhere.
According to the research, carried out by York Aviation, the tax rise will also cost the Scottish economy up to £77 million in lost tourism spend.
Kevin Brown, Edinburgh airport’s managing director, said the consequences of the tax are “significant” for Scotland.
“Further taxation in this area will cost jobs and damage Scotland’s economy,” he said.
The report has spurred the airports to call for a route development fund.
Amanda MacMillan, managing director at Glasgow airport, said Scotland needs a thriving airline industry if it its to compete in Europe and attract jobs, tourism and investment.
“Our geographical location means we are heavily dependent on a strong and diverse international route network,” she said.
“However, with the highest aviation taxes in Europe, Scotland is at risk of losing out on valuable inward investment and inbound tourism.”
The “vital lifeline services” to the Scottish islands could also be at risk, said Derek Provan, Aberdeen airport’s managing director
He said: “Our message is simple. In the face of this added financial burden, the Scottish aviation industry needs extra support.”