Major European airlines including Lufthansa, IAG, and Air France are facing significant financial exposure to EU carbon costs. Recent analysis indicates that each carrier could be liable for over €1.5 billion as emissions regulations tighten across the continent. This financial pressure stems from the phasing out of free allowances and the increasing cost of carbon permits. The shift forces airlines to either absorb the costs or pass them on to passengers, highlighting the urgency for sustainable aviation fuel and fleet modernization.
