Lufthansa implements green tax citing adherence to EU climate regulations

Amid increasing severe weather events driven by climate change, which are also leading to more severe air turbulence, Janzen noted that customer response has not been entirely negative.

“We get also very positive feedback actually for that step — that we make it transparent,” he said.

Lufthansa Group carriers include Lufthansa, SWISS, Austrian Airlines, Eurowings, Brussels Airlines, Lufthansa City Airlines, Discover Airlines, and Edelweiss Air.

The surcharge aims to cover part of the rising costs associated with adhering to various regulatory environmental requirements. This includes the EU’s “Fit for 55” greenhouse gas emissions reduction program which will require operators to incorporate a two percent Sustainable Aviation Fuel (SAF) blend for departures from EU countries starting January 1, 2025. This SAF blending quota will increase over time: six percent by 2030; twenty percent by 2035; and seventy percent by 2050. “For the Lufthansa Group,” warned in a statement last month "this will lead to additional costs in the billions in the future."

SAF remains substantially more expensive than conventional jet fuel derived from petroleum-based hydrocarbons. Currently representing less than 0.05% of total EU aviation fuel use according to Ricardo—the global environmental consultancy recently tapped by EASA (European Union Aviation Safety Agency) to lead Europe’s first-ever SAF clearinghouse—SAF usage is expected to grow significantly due to regulatory requirements.

Janzen emphasized that the two percent SAF blend requirement taking effect on January 1 affects all airlines departing Europe. “It’s not a Lufthansa or Germany [specific law]. It’s for all airlines leaving Europe," he said.

He declined speculation on how other carriers might handle increased SAF costs: "I cannot comment on what other airlines are thinking. But for us it was the right step...to give also...the possibility...to plan...on our customer side."

Adjustments under both EU Emissions Trading System (EU ETS)—a cap-and-trade system covering flights within EEA—and global offsetting scheme CORSIA are factors behind Lufthansa Group's decision regarding surcharges.

“In addition to kerosene tax,” stated Austrian Airlines chief commercial officer Michael Trestl in Boston “the EU ETS” among “many many things...actually upcoming next year...will raise environmental cost.”

Introducing such an environmental cost contribution is seen as logical given these upcoming expenses: "Those costs have also be born at end day," Trestl added

Regarding achieving Net Zero by2050 via SAFs alone? Trestl noted it's multifaceted: technological advancement/new aircraft reducing CO2 emissions; operational efficiency especially streamlined air traffic management reducing emissions—but ultimately SAFs will play crucial role without which achieving goals isn't feasible.

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