Lufthansa will introduce an 'Environmental Cost Surcharge' of up to 72 euros ($77) on its fares, starting Wednesday, June 26, for departures from January 1, 2025, the airline group announced, as shared by Reuters.
The surcharge, ranging from 1 euro to 72 euros depending on the ticket type, will be applied to flights departing from EU countries, the UK, Norway, and Switzerland.
The increase aims to offset the rising costs associated with regulatory environmental requirements, including using sustainable aviation fuel (SAF), which is essential for reducing aviation's carbon footprint.
Lufthansa's stock initially dropped following the news but later recovered, according to Yahoo Finance.
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Environmental Fees for Airlines
This move mirrors a similar decision by Air France-KLM as the airline industry keeps up with the financial impact of new EU emissions reduction regulations. The aviation sector, responsible for about 2% of global emissions, faces challenges in decarbonizing due to the current reliance on conventional jet fuel.
The new EU emissions reduction regulations mandate that fuel suppliers ensure a progressively increasing percentage of sustainable aviation fuel (SAF) at EU airports, with specific targets set at 2% by 2025, 6% by 2030, and 70% by 2050.
These measures aim to reduce the aviation sector's carbon footprint by promoting bio-based and other sustainable fuels, aligning with the EU's climate goals to lower greenhouse gas emissions.
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