British Airways Owner Warns Green Fuel Mandates Could Kill European Aviation

Résumé détaillé

British Airways parent IAG warns that rising sustainable aviation fuel requirements could drive up airfares, undermine European airlines’ competitiveness and deepen financial pressures.

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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 and cause damage to the aviation industry.

The amount of sustainable aviation fuel (SAF) an airline is required to use is due to rise next year, under the proposed rules.

Currently, British airlines’ fuel mix must be 3.7 per cent SAF. After rising next year, this amount is expected to soar to 10 per cent by the end of the decade.

Gallego warned that oil companies that produce SAF are not producing enough for them to use in order to meet the mandated green targets.

Gallego told the Financial Times: “We have mandates for things that do not exist.”

“All the European airlines will have a major cost disadvantage to global competitors and this is going to have consequences,” Gallego said.

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