Recently, the Lufthansa Group announced a new “environmental cost surcharge” that will be imposed on flights to cover the expenses associated with meeting new green regulatory requirements for airlines. This surcharge, which could go up to 72 euros per flight, is set to be implemented starting from January 1 and will be applicable to all tickets issued after June 26. The group, which comprises Lufthansa, Austrian Airlines, Swiss, Brussels Airlines, and Eurowings, cited the increasing costs linked to environmental regulations as the reason behind this additional charge.
Lufthansa Group explained that it is facing escalating costs due to various new environmental requirements, including the EU’s 2% blending quota for sustainable aviation fuel from 2025, adjustments to the EU Emissions Trading System, and compliance expenses with CORSIA. These factors have contributed to the decision to introduce the environmental surcharge to recoup some of these expenses. The environmental charge will be applicable to all flights sold and operated by Lufthansa Group departing from the 27 EU member states, as well as the U.K., Norway, and Switzerland.
The amount of the surcharge will vary depending on the flight route and fare paid by the passenger. It is expected to range between 1 and 72 euros, with the exact amount being displayed during the booking process. The purpose of this charge is to partially cover the costs associated with the airline group’s sustainability efforts. Lufthansa Group emphasized that it is investing significantly in new aircraft and other initiatives to enhance the sustainability of flying. However, the company stated that it cannot bear the rising financial burden resulting from regulatory requirements independently.
Last year, Lufthansa Group CEO Carsten Spohr had cautioned that European airlines might need to raise fares, potentially risking losing passengers to non-EU carriers due to the mandatory use of sustainable aviation fuel. The introduction of the environmental cost surcharge is a direct response to the mounting expenses faced by airlines in complying with new environmental rules and regulations. While the surcharge aims to alleviate some of the financial strain on the Lufthansa Group, it may also lead to higher airfares for passengers traveling with the airline group.
The environmental cost surcharge introduced by Lufthansa Group is a reflection of the challenges faced by airlines in meeting stringent environmental standards. As the aviation industry moves towards a more sustainable future, it is essential for airlines to adapt to these changes while balancing financial viability. The surcharge, although necessary from a regulatory compliance standpoint, may have implications for ticket prices and competitiveness in the market.
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