Budget flights could soon become a thing of the past thanks to new carbon taxes in the European Union.
As The Independent writes, the new rules are an extension of the current EU rules on the Emissions Trading System (ETS).
It is noted that at the moment, air carriers that offer flights throughout Europe must obtain permission from the ETS for the carbon dioxide emissions that their aircraft leave behind. However, if this procedure is currently free for airlines, the new law provides that in the years 2024-2026, fees for such permits will be gradually charged. In this way, airlines want to encourage a more responsible approach to the environmental friendliness of their aircraft fleet.
At the same time, Bernstein analyst Alex Irving believes that as a result, passengers will face an increase in air ticket prices by approximately 10 euros, because airlines are unlikely to cover the new costs at their own expense.
This opinion is shared by the general director of the International Council of Airports of Europe, Olivier Yankovets. He is sure that future innovations will change the “economy of the sector”.
“This will increase airline costs, increase fares and reduce demand. Flights through EU hub airports such as Amsterdam, Paris, or Frankfurt will become more expensive by around 23-29% in 2035,” he said.
As DIP reported, previously the CEO of the Irish low-cost airline Ryanair, Michael O’Leary, announced an increase in the company’s ticket prices already in 2023.