ETS Charges Start

Lufthansa has announced that it will include the full cost of the EU ETS in its fuel surcharge from Jan. 1, while warning that European-based airlines are now at a disadvantage.

The airline estimates that the ETS will cost €130 million ($167.3 million) in 2012, and while there will be no immediate increase; the next fuel surcharge review will take into account that additional cost.

Lufthansa said that due to its growth over the past five years, it would have to acquire 35% of the certificates it requires, as the free allocation is 82% of the average emissions between 2004 and 2006.

Carsten Spohr, executive board member of Deutsche Lufthansa AG, said, “Climate change is a global challenge. This means we also need a global solution. The incorporation of airlines in the EU Emissions Trading Scheme means that European operators are now facing additional costs which will make flying within and via Europe more expensive for passengers. It will also distort competition and impact on the sustainability of the aviation industry if it proves impossible to implement with the competitive neutrality promised by policy makers. However, given the huge resistance at international level, it is unclear just how the situation will develop.”

Lufthansa last raised its fuel surcharge for European and long-haul flights on Dec. 15, 2011 from €3 to €10.