EU carbon cost expansion could raise airline fares, CEOs warn

Airline CEOs are warning that the European Union's plan to expand carbon costs will lead to higher airfares. The EU is extending its emissions trading system (ETS) to cover more flights, which airlines say will increase their operating expenses. The industry argues that passengers will ultimately pay the price through more expensive tickets. The debate highlights the tension between climate policy goals and industry competitiveness. While the EU aims to reduce aviation emissions, airlines claim the added carbon costs could hurt demand and put European carriers at a disadvantage against non-EU competitors. The outcome will depend on how the policy is structured and whether revenues are reinvested into cleaner aviation technology.