Europe’s biggest airlines have issued a warning to the European Union: expanding carbon emission costs to international flights could push up the price of airline tickets and air cargo.
CEOs from major airline groups including Air France-KLM, British Airways’ parent IAG, Lufthansa, Ryanair, easyJet, and TUI have urged the European Commission to reconsider plans to extend the EU Emissions Trading System (ETS) beyond flights within Europe.
The EU Emissions Trading System (EU ETS) requires airlines, along with factories and power plants and others, to buy permits for greenhouse gas emissions, while capping supply to drive reductions over time. For flights is a “cap-and-trade” carbon market that requires airlines to pay for the greenhouse gases they emit. It limits the total carbon a sector can release and forces airlines to surrender allowances for every tonne of CO₂ they produce.
Airlines argue that the move would add billions in extra costs, which would ultimately be passed on to passengers through higher fares. They also warn it could weaken the global CORSIA aviation climate agreement led by the United Nations and put European airlines at a competitive disadvantage.
The European Commission, however, maintains that stronger carbon pricing is needed to ensure aviation contributes fairly to climate goals.
With airlines already battling high fuel prices, aircraft shortages, and operational challenges, passengers may soon face even higher costs for international travel.