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Lufthansa to raise ticket prices due to EU ETS

Lufthansa said on Tuesday it may raise ticket prices in Europe due to that fact that aviation is included in the EU Emissions Trading Scheme (ETS) as of January 2012, it said on Tuesday.

Lufthansa said it will have to buy at least 35 per cent of the EU emission allowances (EUAs) it needs to represent its growth in recent years and expects to incur additional expenses of 130 million euro in 2012.

"As competition is tough - especially from non-EU companies, whose operations are only subject to limited emissions trading rules - Lufthansa will have to pass on the costs via higher ticket prices", said the airline.

"Lufthansa will therefore include the cost of purchasing the certificates in its existing fuel surcharge as of the beginning of 2012. However, it has no immediate plans to increase this surcharge", it said.

"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", said Carsten Spohr, Member of the Executive Board of Deutsche Lufthansa AG. 

"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", he added.

Lufthansa last raised its fuel surcharge for European and long-haul flights on 15 December 2011 by three to ten euros. In the future, the surcharge will reflect both the price of oil and the cost of acquiring emission rights.

Source: Lufthansa