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Environmental charges on airline tickets will be the norm

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times  or enjoy below:

🗞️ Driving the news: Lufthansa will introduce a compulsory "environmental cost surcharge" on flights from the EU, the UK, Norway, or Switzerland starting in 2025
• This surcharge aims to cover environmental costs, adding up to €72 for first-class long-haul tickets and €1-€7 for short- to medium-haul flights

🔭 The context: The surcharge is a response to increasing environmental regulations, including EU requirements for airline fuel to include a minimum of 2% Sustainable Aviation Fuel (SAF) starting next year, and changes to emissions trading schemes (ETS)
• Similar charges were initiated by Air France-KLM in 2022

🌍 Why it matters for the planet: Mandatory environmental surcharges represent a shift towards more sustainable aviation practices
• These measures are intended to reduce the carbon footprint of air travel, which is crucial for combating climate change and meeting international emissions targets

⏭️ What's next: Other legacy carriers are expected to follow Lufthansa's lead in imposing mandatory green surcharges
• These surcharges will likely become a standard practice among traditional airlines as they navigate the evolving regulatory landscape and work to meet sustainability goals

💬 One quote: “Expect mandatory green surcharges to pick up among legacy carriers in particular,” reflecting the broader industry trend towards integrating environmental costs into ticket prices

📈 One stat: Compliance with the 2025 EU blending rules for SAF could add an estimated €17 million to Lufthansa’s fuel bill, which is forecasted to be around €8.3 billion for 2024

Click for more news covering the latest on sustainable mobility

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