The practice involves planes emitting smoke while in the air at between 7,000ft and 14,000ft, with messages visible for around four minutes.
Skywriting and skytyping - where multiple planes are used in formation - were banned in 1960 due to safety concerns, but the Department for Transport has opened a public consultation on repealing the prohibition.
The DfT also said it wanted to amend regulations from 1995 to allow "advertising activities of skytyping and skywriting to be lawfully conducted".
It could be used for mass outdoor events like music festivals and sporting fixtures, and would bring an estimated £4 million in tax revenue in five years.
The DfT said: "Skywriting is expected to generate activity in the form of enhancement to existing air displays and private individuals could use it for personal messages, such as marriage proposals or birthday celebrations.
"It is important to stress that the potential additional emissions resulting from skytyping and skywriting activities are expected be minimal and have a negligible impact overall on lead emissions in the UK."