Lufthansa to Introduce Environmental Fees Starting in 2025
Due to increased costs from EU climate regulations, Lufthansa will implement environmental fees on flight tickets from the following year. These fees will differ based on the flight route and fare class. The influenced countries include all EU nations, the UK, Norway, and Switzerland.
From June 2023, Lufthansa and its affiliates will impose environmental fees on tickets ranging from 1 to 72 Euros for each ticket issued. These fees will be applicable for flights with a takeoff in any of the aforementioned countries. Lufthansa sees this measure as a means to meet a portion of the escalating costs due to environmental regulatory demands by the EU. These regulations necessitate substantial investments, a burden that Lufthansa alone can't manage.
These environmental fees will apply to all Lufthansa and its affiliate airline tickets issued from June 26, 2023, for departures on or after January 1, 2025. The fees will primarily increase economical and business class tickets for short to medium-haul flights by 1-5 Euros, and 1.50 to 7 Euros for long-haul business class flights. The highest surcharge of 72 Euros will be levied on long-haul first-class flights.
Lufthansa's green fares, however, are seldom chosen by customers, despite being available as a voluntary option. Green fares allow passengers to pay extra for climate protection, with a Munich to Frankfurt flight, for example, costing an added 50 Euros. Yet, this optional add-on is only utilized by 4% of customers. Lufthansa has faced criticism from consumer protection organizations and the European Commission for misleading green fare promotions. In early May, the European Commission issued warnings to 20 European airlines regarding potential "greenwashing," or misrepresentation of environmental concerns.
Apart from the environmental fee, airlines in the EU will also be required to cover 2% of their jet fuel requirements with sustainable aviation fuel, about five times pricier than fossil fuel. Airlines will also incur higher costs for CO2 emissions certificates in the EU, Switzerland, and the UK. Lufthansa's CEO, Carsten Spohr, has recently expressed skepticism about these requirements, stating they are infeasible and unaffordable, potentially threatening European aviation as non-EU competitors offering cheaper flights via Dubai or Istanbul will be more appealing.
