Lufthansa Group will add an environmental charge of up to 72 euros
Lufthansa will add an environmental charge of up to 72 euros ($77) to its fares to cover the cost of new European Union rules on reduction emissions, the airline group said on Tuesday,
Fares will go up between 1 euro and 72 euros, depending on the type of ticket, on all flights departing from European Union countries, Britain, Norway and Switzerland, the German airline group said. Some of the increases are effective from June 26 for departures starting from Jan. 1, 2025 onwards.
It said the charge would “cover part of the steadily rising additional costs due to regulatory environmental requirements” such as sustainable aviation fuel (SAF) made from bio-based materials – regarded as crucial to making flying less polluting.
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Aviation is deemed responsible for about 2% of the world’s emissions but is considered one of the hardest sectors to decarbonise as fuel for flights cannot be easily replaced with other kinds of power.
European regulators introduced rules that ask fuel suppliers to ensure 2% of fuel at EU airports is SAF by 2025, rising to 6% in 2030 and 70% in 2050, with many arguing these measures will increase costs for the sector.
“I think it is logical to assume that other airlines will follow Lufthansa’s lead as it looks to pass on the increasing cost of environmental regulations in the EU,” said Dudley Shanley, an analyst at Goodbody.
Air France-KLM imposed an SAF contribution charge in January 2022, it said, adding up to 12 euros on business fares and up to four euros on economy fares at the time. It is now considering broadly similar measures to Lufthansa, a person familiar with the matter said, indicating a charge that could be higher.
“We have a SAF contribution in place, applicable to all flights (not only on departure from Europe) to transparently reflect the additional cost of incorporating sustainable aviation fuel,” an Air France-KLM spokesperson said in an emailed statement.
British carrier easyJet, which has focused much of its environmental strategy on carbon reductions using hydrogen technology, said it wasn’t planning on following in Lufthansa’s footsteps.
With information from Reuters
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