Lufthansa CEO Warns SAF Mandate will Push up Fares

Lufthansa CEO Carsten Spohr has warned that European airways could also be compelled to extend fares and danger dropping visitors to non-EU carriers due to the brand new mandate for the usage of sustainable aviation gasoline.

The EU final week took a huge step toward introducing minimum SAF fueling requirements, referred to as ReFuelEU Aviation, which can apply from 2025—beginning at an preliminary 2 % mixing combine after which growing through the years to in the end attain 70 % by 2050.

However Spohr mentioned that whereas the method on SAF was proper “in precept,” European airways may lose out as a result of the EU’s rules weren’t “competition-neutral.”

“Presently, the obligatory mixing quotas solely apply inside Europe, together with feeder flights to our hubs,” mentioned Spohr.

“Non-European airways usually are not required to replenish with the sustainable—however costly—gasoline at their hubs. It will make tickets from European airways dearer as a result of no airline can compensate for the extra value.”

Spohr’s feedback had been included in a pre-released copy of a speech he is because of give at Lufthansa’s annual common assembly subsequent week.

He added that increased costs to pay for SAF would “improve the probability” that passengers would select to make use of connections exterior Europe due to decrease airfares, even when that journey concerned detours.

“Finally, which means of their present kind, these EU rules solely result in a shift in carbon emissions,” mentioned Spohr. “On the similar time, it might be like a subsidy programme for airways exterior Europe, which—on prime of every little thing else—have considerably worse environmental and social requirements.

“Unfair local weather safety rules put European airways at an obstacle. In doing so, they’re harming not solely us but in addition the local weather.”

Spohr added that assist was wanted on this difficulty from politicians in Brussels, Berlin and different European capitals.

Lufthansa’s CEO additionally revealed that at the moment solely 3 % of the group’s passengers took benefit of sustainability initiatives, akin to making flights carbon-neutral and its just lately launched “inexperienced” fares.

Spohr mentioned the group’s carbon-neutral platform, which permits passengers to pay for sustainable gasoline, was “nonetheless utilized by too few passengers” after being launched greater than three years in the past.

“The extra value of carbon-neutral kerosene deters many. For a flight throughout the North Atlantic, the surcharge provides as much as round €400—not everybody can or needs to afford that,” he added.

Initially printed by BTN Europe.