European airlines will have to raise prices due to decarbonization costs

According to Luis Gallego, CEO of International Consolidated Airlines Group S.A. (IAG), European airlines would have to increase ticket prices to offset the expense of cutting harmful emissions, as reported by the Financial Times.

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European airlines will have to raise prices due to decarbonization costs © Daily Management Review

Gallego said that abandoning flying would have a significant effect on the industry and result in a shift to more costly but environmentally friendly fuel.

“Flights will become more expensive,” he stated. – “We are attempting to increase efficiency in order to address that issue, but doing so will have an impact on demand.”

Strict EU net zero emissions standards, which include raising the use of green fuels in the aviation sector to 6% by 2030, may make European airlines less competitive.

“We agree with decarbonization, but I think it should be done evenly around the world so as not to jeopardize European aviation,” Gallego stated in this respect.

source: ft.com

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