Climate Surcharges: Coming Soon to an Airport Near You?
The largest airline in Europe, Germany’s Lufthansa, just began charging its customers an Environmental Cost Surcharge to help cover the very expensive sustainable aviation fuel (SAF) the EU has mandated be used. The extra costs could be as high as 72 euros, or $77. For now.
European regulators implemented requirements that two percent of fuel used at EU airports be SAF by 2025, six percent by 2030, and 70 percent by 2050. Since SAF costs anywhere between 120 percent and 700 percent more than fossil-based jet fuels, the surcharge really is no surprise.
Regulators cannot expect companies to absorb these costs. It is practically impossible. Basic economics tells us that companies almost always pass along extra expenses to consumers. Lufthansa has even said they “will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own.”
Perhaps this is all by design. Those pushing for a net-zero world actually want to see a drop in demand for anything that consumes fossil fuels. Aviation groups contend that EU and European........
© Townhall
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