Following the implementation of a carbon tax for airlines flying to Europe, air travelers will in the coming months pay a little more for their airline tickets.
The European Union (EU) Emissions Trading Scheme (ETS) initiative was launched in 2005 as one of the major pillars of the bloc�s efforts to combat climate change.
From January 1, this year, all airlines using EU airports will pay a levy which is charged on flights based on their carbon emissions.
All airlines are thus required to hold emission rights in the form of CO2 certificates for flights to and from Europe.
However the China Air Transport Association has stated that China�s airlines will refuse to pay any carbon costs under the EU�s ETS, while other Asia Pacific carriers already battling a weak travel market are likely to pass on the extra cost to passengers.
Carsten Spohr, Member of the Executive Board of Deutsche Lufthansa AG said: �Climate change is a global challenge. This means we also need a global solution. The incorporation of airlines in the EU Emissions Trading Scheme means that European operators are now facing additional costs which will make flying within and via Europe more expensive for passengers. It will also distort competition and impact on the sustainability of the aviation industry if it proves impossible to implement with the competitive neutrality promised by policy makers. However, given the huge resistance at an international level, it is unclear how the situation will develop.�
According to the airline, as competition is tough, especially from non-EU companies whose operations are only subject to limited emissions trading rules, Lufthansa will redirect the costs via higher ticket prices as recommended by the EU.
Lufthansa will therefore include the cost of purchasing the certificates in its existing fuel surcharge as of the beginning of 2012. However, it has no immediate plans to increase this surcharge.
Lufthansa last raised its fuel surcharge for European and long-haul flights on 15 December 2011 by three to ten Euros.
In the future, the surcharge will reflect both the price of oil and the cost of acquiring emission rights.
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