Another airline introducing a ‘green tax’ on airfares
Passengers will soon need to pay an ‘environmental cost surcharge’ on every flight.
By Chris Ashton, July 24 2024
Virgin Atlantic is the latest carrier flagging the rollout of a ‘green tax’ on airfares, with the environmental levy – a response to the rising costs of alternative fuels – expected to come into effect over the next 18 months.
It follows Lufthansa, Swiss and other members of Lufthansa Group, which recently added a passenger surcharge of up to €72 (AU$115) across all flights from the European Union, the UK, Norway and Switzerland from January 1, 2025.
Speaking with The Telegraph, Virgin Atlantic chief Shai Weiss says, “Prices will have to go up to account for the fact that flying with Saf in greater and greater volumes is materially more expensive.”
Though Virgin’s fee is yet to be revealed, Weiss has previously suggested it could be as high as £40 per flight. By comparison, Lufthansa Group’s surcharge varies from €1 to €72, depending on both the route and travel class.
For example, a short one-way hop between Munich and London sees a €2 surcharge on economy class tickets and €3 in business class, while longer trips such as Frankfurt to New York stand at €27 on a one-way business class and €54 in first class.
Lufthansa Group's surcharge applies to all departures from January 2025.
Lufthansa says the ‘environmental cost surcharge’ has been made necessary by EU-mandated measures such as a ‘statutory blending quota’ for sustainable aviation fuel (SAF) for departures from European Union countries from January 2025.
And those costs could increase as the years roll on.
The EU’s “mandatory SAF blending quota” requires that 2% of all jet fuel should contain sustainable aviation fuel from 2025, notching up to 6% from 2030, then jumping to 20% from 2035 and 70% from 2050.
The UK’s own mandate requires a minimum of 2% from 2025, rising to 10% from 2030.
With Virgin Atlantic now joining the movement, it’s expected more airlines across Europe and the United Kingdom could follow suit in passing on this legislated cost to passengers.
Virgin Atlantic will soon introduce a green tax on every flight.
Many airlines around the world – including British Airways, Cathay Pacific, Singapore Airlines and Qantas – have set a target of operating 5-10% of flights using sustainable aviation fuel by 2030, in order to reduce overall emissions to 25% of 2019 levels.
This is considered a milestone on the ambitious path to ‘net zero emissions’ by 2050 – a measure which airline industry body IATA estimates will be largely based on the use of sustainable aviation fuel, along with the adoption of electric and hydrogen engines plus “offsets and carbon capture”.
It’s not just airlines looking at the figures either. Sweden and France have already introduced minimum SAF requirements, while Singapore is also mandating a levy on all departing flights from 2026, when a minimum of 1% SAF use takes effect.
As with Lufthansa, Singapore's fee will vary based on the flight distance and travel class.
Additional reporting by David Flynn.
23 Oct 2014
Total posts 236
Until the flight actually has green fuel loaded - it’s really a con on the customer. If the flight doesn’t contain green fuel - why should these customers pay. If it’s loaded totally get it- but this signalling is getting extreme. Avoid Lufthansa. Once green fuel is in the tanks sure - user pays for the new cost at a choice.
I’d support the green move once established and feel it’s 100% correct direction for a more sustainable travel industry - but it’s got to happen first. Set up costs etc are for government grants / subsidies and corporations to implement - consumers pay tax / levee once the service is offered and supplied on said flight.
Singapore Airlines - The PPS Club
30 Nov 2015
Total posts 8
Supporting the transition to better fuel use is easy. Expecting your customer to pay for it when you have operating profits of 1.7 billion euros and crying poor is not so easy to swallow.
Etihad - Etihad Guest
21 Jul 2019
Total posts 174
Are readers genuinely surprised? When was the last time a positive development EVER came out mediocre Lufthansa??
21 Sep 2022
Total posts 7
Sustainable aviation fuel???? Has this even been developed yet?
Sounds more like a subsidy for Lufthansa along with all the others with their fingers in the honey pot.
31 Dec 2014
Total posts 47
How does an economy green ticket promising 20% SAF work? Does the plane have two fuel tanks? One for normal passengers and another just for these higher paying suckers (sorry) guests?
This is just a price hike under a different name.
24 Apr 2017
Total posts 79
Pretty pathetic to charge business class an first class more, I didn't realise there were different graded of fuels for different classes of flight!
24 Apr 2017
Total posts 79
Pretty pathetic to charge business class an first class more, I didn't realise there were different grades of fuels for different classes of flight!
28 Sep 2022
Total posts 15
Really stupid - if people want green fuel and are willing to pay more for it, then they will. This is completely unnecessary, and it's especially unnecessary considering everything else EU is doing to kill air travel and make it more expensive!
Qantas - Qantas Frequent Flyer
26 Oct 2017
Total posts 97
$$$ First , Environment second or maybe last. All that is talked about is dollars, bonus points without mention of a single tree being planted.
17 Nov 2023
Total posts 28
Virtue signalling. I thought that was unique to Australia!
Qantas - Qantas Frequent Flyer
14 Nov 2018
Total posts 5
is there even enough SAF around for all the airlines?
Qantas - Qantas Frequent Flyer
18 May 2017
Total posts 34
CON JOB written all over this so called "green tax". Passengers should boycott airlines that charge for this. Time is fast approaching when people just can't be bothered travelling any longer on airlines, unless it is absolutely necessary.
28 Apr 2021
Total posts 25
Alas yet another "RORT" on the customer when purchasing a ticket.
And the big question is, will any airline introducing such extra charge be held accountable where and how the money actually is used to so call 'improve the environmental situation?????
It is possible that one day some 'DOPE' will come up with the idea to impose taxes on the Volcano activities, Bush Fires and the staggering amount of Fireworks continually let off world wide. Oh my Lord!!
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