We asked experts what they think about this new development.
This week, German carrier Lufthansa introduced a mandatory environmental cost surcharge on tickets. Anyone flying with the airline within the 27 European Union nations, the U.K., Norway, and Switzerland from January 1, 2025, will pay an additional €1 to €72, depending on the flight route and fare.
In a statement, the airline explained that E.U. regulations require airlines to use 2% of Sustainable Aviation Fuel (SAF) in 2025, and this percentage increases incrementally to 70% by 2050. There are other regulatory environmental costs, including the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the E.U. Emissions Trading System (E.U. ETS) to control carbon emissions and offset them. The airline said that it can’t bear the increasing costs in the coming years and part of it will now be covered by the surcharge.
The Frankfurt-based group introduced Green Fares in 2023—these are separate fares for more sustainable flying—and reported that a million passengers opted for them in its first year. But the new surcharge isn’t optional.
What Brought This On?
Aviation accounts for more than 2% of global carbon emissions. The E.U. has implemented multiple pieces of legislation to reduce emissions since 2012, but de-carbonising the industry is a difficult task with cheaper fuel alternatives.
The industry is slowly shifting to Sustainable Aviation Fuel (SAF), which is produced without fossil fuels. Lufthansa clarifies that the company produces their SAF using biogenic residues like cooking oil and waste fats. SAF has the potential to cut carbon emissions by as much as 80% compared to traditional jet fuels. It emits the same amount of carbon dioxide during flights, but its production process is more sustainable. However, the cost of this fuel is two to five times more and there’s not enough to go around in the world.
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Lufthansa suspects that it will cost billions to meet the E.U. regulations of SAF quotas in the coming years, so passengers are being asked to pitch in.
Camille Mutrelle, an expert on Sustainable Aviation Fuel (SAF) at The European Federation Transport & Environment, said that these are bound to happen because alternative fuels are expensive, and passengers should take responsibility for their emissions. However, passengers deserve to know what they’re paying for. “Lufthansa is mostly purchasing questionable fuels made from waste oils and fats, instead of investing in truly green fuels like e-kerosene. The surcharge announced does not provide enough clarity on the volumes and costs of SAF purchased, nor on the distribution of costs between the airline and its passengers.”
Green initiatives are murky territory and airlines are often criticized for lack of transparency. The E.U. has also took action in April against 20 airlines for greenwashing. It identified several misleading practices, including “creating the incorrect impression that paying an additional fee to finance climate projects with less environmental impact or to support the use of alternative aviation fuels can reduce or fully counterbalance the CO2 emissions” and “using the term ‘sustainable aviation fuels’ (SAF) without clearly justifying the environmental impact of such fuels.”
Related: Dutch Court Rules KLM Misled Customers
Tim Johnson, Director of UK-based non-profit Aviation Environment Federation (AEF), tells Fodor’s that the news is grabbing attention because of the claims that consumers are getting hit by high charges. However, most passengers will be paying a fee closer to the lower end of the spectrum.
But here’s the catch—airlines have been asking for governments to chip in for de-carbonising costs, and environmental groups are against taxpayers’ money being directed to an industry that doesn’t pay taxes on fuel. “In this context, are fees like this simply about transparency, or an attempt to generate a public backlash that puts politicians under pressure to open the state purse?”
What Does This Mean For Passengers?
Scott Keyes, Founder of Going (formerly Scott’s Cheap Flights), tells Fodor’s that it’s possible that the airline will keep its pricing low to have competitive prices, but most likely customers will notice higher prices in future.
He added that it’s laudable that economy passengers will pay lower green surcharges, up to €12 on long-haul flights compared to €36 for business class passengers and €72 for first class. “By definition, larger seats take up more space onboard and thus account for more of the plane’s overall emissions, so having higher fees on larger seats makes sense.”
Flying economy will remain lighter on the pocket. But will airlines in America follow suit? “It’s likely that other European airlines will introduce similar green surcharges, but highly unlikely you’ll see the same from U.S. airlines.”