British Airways owner IAG warns airfares must rise to fund carbon cuts

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Company’s chief Luis Gallego expects cost implications of switch to cleaner fuel to hit passenger demand

Airlines in Europe will be forced to raise prices to fund the cost of cutting carbon emissions, the boss of British Airways and Aer Lingus owner IAG said.

He added that European airlines could become less competitive because of the bloc’s tough net zero targets, which include a requirement for 6 per cent of jet fuel to be from sustainable sources by 2030.Simple Probate: app helps with protracted legal process of executing a will But very little of it is being produced — less than 1 per cent of total aviation fuel consumption last year was from sustainable sources — meaning it is far more expensive than jet fuel.

Last month, Lufthansa became one of the first airlines to announce a surcharge on tickets to fund cleaner fuels and decarbonisation. He welcomed the decision, which he hoped was a sign that regulators would also give the green light to IAG’s proposed takeover of the Spanish carrier Air Europa.

 

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