German airline Lufthansa increases ticket prices by up to $77 due to environmental costs

German airline Lufthansa increases ticket prices by up to  due to environmental costs
German airline Lufthansa increases ticket prices by up to  due to environmental costs

Lufthansa Group, a German airline, announced Tuesday that it will introduce an “environmental cost surcharge” on ticket prices, starting this week. The surcharge could be as high as 72 euros ($77) for some flights. Lufthansa said the additional fee is intended to offset rising costs resulting from environmental regulations imposed by the European Union and the International Civil Aviation Organization.

The surcharge will be applicable to flights departing from any of the 27 member countries of the European Union, as well as the United Kingdom, Norway and Switzerland. It will be implemented on all flights sold or operated by the Lufthansa Group, which includes airlines such as Lufthansa, Eurowings, Swiss, Edelweiss Air and Austrian Airlines.

Lufthansa clarified that the amount of the fee will vary depending on the flight route and fare, from 1 euro to 72 euros. Customers will be able to see the exact amount during the booking process. The fee will be applicable to tickets issued from June 26, with flights departing from January 1, 2025.

The airline noted that various regulations, including EU quotas on sustainable aviation fuel use, will increase costs for airlines. Starting in 2025, these quotas will progressively increase until 2050. Sustainable aviation fuel, derived from sources such as waste oils and fats, non-food crops and waste materials, serves as an alternative to fossil fuels and can contribute to reducing emissions.

The International Air Transport Association believes that sustainable aviation fuel could account for around 65% of the emissions reductions needed to reach the goal of net zero emissions in aviation by 2050. Lufthansa has recognized that these shares will result in substantial costs in the future, amounting to billions.

Lufthansa also attributed the rising environmental costs to the emissions trading schemes implemented by the EU, Switzerland and the UK. These schemes monitor and limit emissions, with the overall cap gradually decreasing to reduce the environmental impact. Lufthansa also highlighted the importance of the International Civil Aviation Organization’s climate protection agreement, which aims to control emissions.

The airline said it is investing heavily in technology to improve the sustainability of aviation and support climate research. Lufthansa, however, underlined that in the coming years it will not be able to bear the growing additional costs imposed by the regulatory rules alone. As a result, a part of the expected costs for 2025 will be covered by the new supplement for environmental costs.

In summary, the Lufthansa Group is implementing an «environmental cost surcharge» on ticket prices to offset rising expenses resulting from environmental regulations. The surcharge will be applicable to flights departing from EU member countries, the United Kingdom, Norway and Switzerland. Lufthansa is committed to investing in sustainable aviation and climate research, but needs assistance to cover the growing costs imposed by regulatory requirements.