BCS - Air Travel To Get Expensive As Airlines Prepare To Pass $5T Decarbonization Expenses To Passengers: Report | Benzinga
The global airline industry has consistently cautioned passengers about the inevitable need to contribute to the $5 trillion expense of decarbonizing air travel. That time has now arrived.
What Happened: Airlines across the world are raising ticket prices to offset the expenses of decarbonizing air travel, reported Bloomberg on Thursday. The cost of sustainable aviation fuel, a primary tool for achieving the industry’s 2050 net-zero target, is more than double that of traditional jet kerosene. This has left airlines with little choice but to transfer the additional cost to passengers.
"We've entered a new era," said Rico Luman, a transport, logistics, and automotive economist at ING Groep NV in Amsterdam. "Flying will turn more expensive."
Several countries have introduced measures to fund the transition. Singapore is imposing a tax on airfares, while Malaysia has authorized carriers to levy a carbon fee. In Europe, airlines are losing a quarter of their free emissions allowance, leading to ticket prices rising.
Despite the variations in policies, the common objective is to clean up an industry that has relied on fossil fuels for a century. Airlines fear that failure to demonstrate a serious commitment to cutting ...