Lufthansa Introduces Environmental Surcharge to Address Climate Regulation Costs

Lufthansa Group announced today the implementation of a new Environmental Cost Surcharge to offset the expenses of complying with increasing environmental regulations. Starting January 1, 2025, this surcharge will apply to all flights sold and operated by Lufthansa departing from the 27 EU countries, as well as the UK, Norway, and Switzerland. The surcharge will range from €1 to €72, depending on the flight route and fare.

The surcharge addresses the financial impact of new EU regulations, particularly the mandates to use sustainable aviation fuel (SAF) and adjustments to the EU Emissions Trading System (EU ETS). These measures are part of the EU’s broader strategy to reduce carbon emissions and promote sustainable energy use within the aviation sector.

In October 2023, the EU adopted the “ReFuelEU Aviation” law, which aims to boost the demand and supply of SAF by establishing minimum blending requirements for fuel suppliers and setting progressive targets. By 2025, EU airports must achieve a minimum SAF share of 2%, increasing to 70% by 2050. Additionally, the law includes a mandate for a minimum share of synthetic fuels starting in 2030.

The EU has also updated the EU ETS, a scheme that prices carbon emissions for high greenhouse gas (GHG) emitting sectors, including aviation. These updates involve more stringent emission reduction targets and the gradual elimination of free allowances for intra-European flights, extending to flights departing for the UK and Switzerland.

Furthermore, under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the International Civil Aviation Organization (ICAO) requires airlines to offset growth-related CO2 emissions through the purchase of certificates for emissions exceeding 85% of 2019 levels.

Lufthansa aims to achieve a neutral CO2 balance by 2050 and has set an intermediate target to halve its net CO2 emissions by 2030 compared to 2019 levels. The company is focusing on fleet modernization, optimizing flight operations, increasing the use of SAF, and offering sustainable travel options to private and corporate customers.

Lufthansa’s Environmental Cost Surcharge is part of its broader strategy to meet these ambitious climate goals while managing the financial implications of adhering to new regulatory requirements.