EU plan to expand carbon costs to flights departing Europe will raise fares, airline CEOs warn

Major European airline CEOs including those from Air France-KLM, IAG, Lufthansa, and Ryanair have warned the European Commission that expanding the EU Emissions Trading System (ETS) to cover flights departing the EU will increase ticket prices. The Commission is reviewing the scheme next month and considering extending carbon costs beyond intra-European flights to all outbound flights. Currently, airlines must buy permits for emissions on flights within Europe, and the proposed expansion would apply the same requirement to international departures. The airline executives argue the added compliance costs will be passed directly to passengers through higher fares. The EU ETS already covers factories and power plants, and adding international aviation would broaden the carbon pricing mechanism significantly. The debate highlights the tension between climate policy goals and industry competitiveness, with airlines pushing back against what they see as an uneven regulatory burden that could put European carriers at a disadvantage versus non-EU competitors.