Meeting carbon emissions goals could also provide the added benefit of reducing tourism numbers.
No More Cheap Flights Is the New Reality for Air Travel
Airlines face an expensive and challenging few decades ahead as climate compliance laws get stricter.
The first headwind stems from two big changes in the European Union’s Emissions Trading System (EU ETS). Airlines must have enough emissions allowances to cover every metric ton of carbon dioxide released into the atmosphere on flights starting and ending in the European Economic Area, the UK and Switzerland. Right now, they get about half of those allowances for free. But that deal comes to an end in 2026, as the share of allowances they have to pay for starts to rise from 2024. That is effectively going to double their carbon costs over just three years.