Airline CEOs are warning that the EU's plan to expand carbon costs under its Emissions Trading System will lead to higher ticket prices for passengers. The expanded rules would require airlines to pay for a larger share of their emissions, costs they say will be passed on to consumers. This is the latest flashpoint in the debate over how fast and how far to push carbon pricing in hard to abate sectors like aviation. The EU has been gradually tightening its carbon market, and aviation is a major target. Airlines argue the added costs come at a time when margins are already thin and that the policy could hurt demand for travel. Supporters of the expansion say it is necessary to force the industry to decarbonize and that the true cost of emissions should be reflected in ticket prices. The outcome will be a test of how much political pain the EU is willing to impose for its climate goals.
