The EU's new emission standard could put an end to low-cost flights, as airlines will also have to pay for the emission quota, the price of which is expected to be passed on to consumers.
before the new emissions reduction obligation was adopted, reforms to the EU's emissions trading system were introduced, meaning that from 2026 airlines will have to pay for their emissions, and the previous free allocation of emission rights will be phased out. According to estimates, this means more than 5 billion euros in additional costs for European airlines by 2027, reports V4na.com .
The decision puts additional pressure on airlines and their customers. The new European reduction obligation for aircraft fuel applies to all airlines traveling to and from EU member states, and requires that they use at least two percent emission-free fuel from 2025, and this proportion must rise to 70 percent by 2050.
Fredrik Kämpfe, head of the aviation industry at the Swedish Transportföretagen, is positive about the EU's decision, but notes that prices will increase for customers.
"The experts calculated an increase of more than 40 euros for an average European trip, and even more for a longer trip, which I think is a reasonable assumption. But there are many factors at play, especially the availability and price of sustainable fuel. I think the industry will have to review its business models,” said the industry leader. According to two Dutch analyses, the increased costs of emission units alone reduce the profits of low-cost airlines by 77 percent.
Cover image: Zsolt Czeglédi / MTI
