SYDNEY, Oct 11 — As major companies look at drastic ways to cut carbon emissions from corporate travel, airlines are bracing for a major hit to business-class travel, a key revenue driver, industry executives and experts say.
Flights account for about 90 per cent of business travel emissions. That makes it the lowest-hanging fruit for companies setting reductions targets. “I think what we’re going to see, funnily enough, is more of an unbundling of business class where you might get all perks of business class without the seat,” he said, referring to airport lounges and nicer meals. “Because ultimately it all comes down to the area on the aircraft and it takes up.”
Sam Israelit, chief sustainability officer at consulting firm Bain, said his company was evaluating carbon budgets for offices or practice areas to help cut travel emissions per employee by 35 per cent over the next five years. “I think more broadly, it’s something that companies really will need to start to do if they’re going to be successful in meeting the aggressive targets that everyone’s putting out,” he said.
Global ratings agency S&P, which plans to reduce travel emissions by 25 per cent by 2025, found that 42 per cent of its business class use was for internal meetings, its global corporate travel leader, Ann Dery, said at a CAPA Centre for Aviation event last month.US carrier JetBlue plans for about 30 per cent of its jet fuel for flights in and out of New York to be sustainable within two to three years .
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