Core Viewpoint - Lufthansa is implementing an environmental charge of up to 72 euros ($77) on fares in Europe to address the increasing costs associated with EU climate regulations [2][10]. Group 1: Regulatory Impact - The environmental charge will apply to all flights departing from EU countries, as well as Britain, Norway, and Switzerland, starting January next year [3][10]. - The EU legislation mandates airlines to gradually increase the use of sustainable aviation fuel (SAF) on routes departing EU airports, starting with a requirement of 2% SAF in 2024, increasing to 6% by 2030, and reaching 70% by 2050 [4][12]. - Lufthansa is facing additional costs from changes to the EU's emissions trading system and other regulatory measures [6][11]. Group 2: Financial Performance - After receiving a government bailout during the COVID-19 pandemic, Lufthansa reported strong profits in 2022 and 2023 due to a resurgence in travel demand [7]. - Despite the recovery, the company experienced a significant loss in the first quarter of the year due to a series of strikes [15]. Group 3: Industry Challenges - The aviation sector is particularly challenging to decarbonize, with SAF being a crucial component for meeting emissions targets, although it is currently more expensive to produce [5]. - Airlines for Europe, representing major airline groups including Lufthansa, has expressed concerns about the minimal production of SAF in Europe compared to initiatives in the United States [13]. Group 4: Environmental Goals - Lufthansa aims to halve its net carbon emissions by 2030 compared to 2019 levels and to achieve carbon neutrality by 2050 [14].
Lufthansa to add environmental charge to fares