Airlines in Europe will have no option but to raise airfares to fund net zero goals and cut carbon emissions, the International Airlines Group (IAG), owner of airlines such as British Airways and Aer Lingus, Luis Gallego told the Financial Times.
He said the shift to sustainable aviation fuel (SAF) will significantly impact the industry and the raised airfares as a result may deter customer growth.
European airlines could become less competitive, he argued, as the EU pushes for emissions to be reduced more than half by 2030.
The lack of availability of SAF has led to its bloated costs, one that airlines will have to foot the bill for. Airlines in Europe and the UK have called for greater government support in increasing this availability and thus leveraging the expense.
Airlines will be forced to raise airfares as a result of net zero goals, IAG boss says
