British Airways owner warns green charges will ‘kill’ aviation industry and hike fares
The chief executive of British Airways’ parent company has said planned environmental charges on airlines would “kill” the European aviation industry and push up fares. Luis Gallego, the chief executive of International Airlines Group (IAG), has warned the proposed green charges – which are more burdensome for UK carriers – would hike prices for passengers [...]
British Airways' parent company, International Airlines Group (IAG), has warned that new environmental charges on airlines could "kill" the European aviation industry and increase fares for passengers. Luis Gallego, IAG's CEO, stated that the proposed green charges, which are more challenging for UK carriers, would make prices more expensive for travelers and harm the aviation sector.
Currently, British airlines must use 3.7% sustainable aviation fuel (SAF), but this amount is set to increase to 10% by the end of the decade. Gallego criticized oil companies for not producing enough SAF to meet the mandated targets, implying that European airlines would have a significant cost disadvantage compared to global competitors.
IAG CEO Gallego called for a level playing field in the industry, as without it, European aviation would be killed but the planet wouldn't be saved. This warning comes after UK ministers consulted on the green fuel plans, with one official suggesting a common sense approach to aviation fuel would help keep costs down and make holidays more affordable for families.
IAG's profit has been affected by soaring fuel costs, with pre-tax profit dropping 16% to €3 billion in the nine months to the end of September. The decline was attributed to the significant increase in jet fuel prices since March, caused by the closure of the Strait of Hormuz due to the Middle East war.
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