European airlines say sustainable fuel targets may mean higher fares for passengers
In Belgium, Reuters reported that European airline chiefs said that the industry needs to make more money and may consolidate further to pay for sustainability targets, a trend likely to lead to higher fares for passengers.
The head of British Airways parent IAG said that there was a more than a 90% risk that the industry would not meet a European Union mandate for the availability of sustainable aviation fuel in 2025.
The report explained that the European Union has adopted rules requiring flights departing from EU airports to carry a progressively increasing amount of SAF, starting with 2% of total fuel in 2025.
Gallego said Europe’s tougher rules, compared to other regions, risked making its fragmented industry less competitive, putting pressure on airlines to continue a recent wave of partnerships.
“The problem we have in Europe is we have a small group or a small airline competing in a global war with mandates of sustainability that are ahead of others. We are not going to be competitive,” Gallego said.
Category: SAF
