Daily Management Review

IATA head warns of airfares growth due to transition to eco-fuel


As the aviation sector pushes toward targets of zero net carbon dioxide emissions by 2050, airline passengers will pay more for their tickets, stated IATA's (International Air Transport Association) chief Willie Walsh.

public domain pictures
public domain pictures
The CEO of IATA, whose members include the majority of the world's leading airlines, asked for quicker action in Europe to boost the production of SAF, an environmentally friendly aviation fuel that is now in limited supply.

This year's already seen a rise in air costs as a result of traditional jet fuel, which is made from fossil fuels, becoming more expensive.

At the annual media conference, Walsh told reporters, "You can't expect an industry that produces an average of $1 profit per customer to be able to tolerate the price hikes we're witnessing."

"Future increases in the price of carbon (in the form of emission allowances) should have an impact on ticket pricing as the sector transitions to zero emissions. The higher expenses won't be borne by the airlines," he added.

source: gizmodo.com