Lufthansa to Hike Airfares by Up to €72 Over Rising Sustainable Air Feul Costs
Lufthansa is set to introduce an environmental charge (to adjust sustainable aviation feul costs) on its ticket prices, making it one of the first European airlines to implement such a fee. This new charge is intended to comply with EU regulations aimed at reducing emissions and will take effect from January 1, 2025.
(Also read Fraudster Admits to Cancer Scam, Conning Hundreds for €3,500 and Free Liverpool Trip.)
The group of German airlines, including of Brussels Airlines, Eurowings, Austrian, Swiss, Lufthansa, and the recently established Lufthansa City Airlines, will deduct €72 from ticket prices to cover the expenses of implementing sustainable aviation fuels (SAFs) and other carbon-reduction measures.
The charge will be imposed on flights leaving from the UK, Norway, Switzerland, and all 27 EU members. Tickets booked from June 26, 2024, for journeys starting in 2025 will include the new charge. According to Lufthansa, this extra is required to offset the continuously rising expenses brought on by environmental regulations, such as the EU Emissions Trading System (EU ETS) and other green changes like a 2% SAF blend in gasoline for flights leaving the EU.
Rising Sustainable Aviation Feul Costs Could Lead to Higher Airfares Across Europe
The cost of producing SAFs is now significantly higher than that of conventional jet fuel, which drives up the cost of tickets. Despite limited production, SAFs are seen as a crucial element in reducing aviation emissions. The EU’s Fit for 55 climate program mandates increasing SAF quotas, starting at 2% in 2025 and potentially reaching 70% by 2050.
Lufthansa’s move might set a precedent for other airlines. Air France-KLM has already implemented a similar SAF contribution charge, and industry experts predict more airlines will follow suit to comply with environmental regulations and support decarbonization efforts.
