Lufthansa, Europe’s leading airline group, has launched new regulations to reduce its carbon footprint. However, the costs generated by these investments are directly reflected in ticket prices.
A necessary investment for a more sustainable future. To meet the environmental requirements of the European Commission, Lufthansa had to invest massively in cleaner technologies, sustainable fuels – replacing kerosene – and emissions compensation measures. To cover these costs, the German national company announced on Tuesday June 25 to increase the price of all its European flights.
The surcharge will apply for all flights scheduled “from January 1, 2025”, departing from the 27 countries of the European Union (EU) as well as the United Kingdom, Norway and Switzerland, indicated the group in a press release. Its amount will however vary “depending on the route and the flight price”, on a scale between 1 and 72 euros.
Replacing kerosene is a costly measure
If the compulsory quotas imposed by the EU aim to incorporate more sustainable fuels into aircraft tanks, such as “sustainable aviation fuel” known as SAF, to gradually replace kerosene, the production of SAF remains embryonic. In 2023, it corresponded to only 0.5% of global demand for aviation fuel.
According to Lufthansa, this low availability makes their price three to five times higher than fossil kerosene. “The more SAF production increases, the more their price will fall,” explained a spokesperson for the group. As long as their price does not decrease, the German company could therefore continue to pass on the additional cost to the price of tickets.
In addition, this environmental supplement is added to another surplus, optional this time, offered to travelers by Lufthansa and other airlines, in order to offset their carbon emissions through climate protection projects. A process which was the subject of a complaint from consumer associations last year to the European Commission, accusing around twenty airlines of “greewaching” and “deceptive commercial practices”.
However, Lufthansa is not alone in this situation; other companies in the group, such as Austrian Airlines and Brussels Airlines, have also expanded their offers by integrating more sustainable practices. The impact is felt across the entire network, from Europe to North America, with new routes and increased flexibility, but also higher prices for consumers.
