Lufthansa raises fares, asks passengers to bear EU carbon trading scheme costs

Germany’s flag carrier Lufthansa said that it is raising airfares and has asked its passengers to pay higher prices to buy airline tickets. The airline has taken this move in response to EU Emissions Trading Scheme which seeks more levies from various airlines to cope up with aviation’s contribution to global warming. The European Union has said that its Emissions Trading Scheme regulations already apply to other countries.

Lufthansa is now at the centre of a brewing trade spat and has stoutly refused to shoulder the additional costs arising out of carbon trading scheme. The airline said that it would add the costs from the EU’s Emissions Trading Scheme to its existing fuel surcharge. Lufthansa has also become the first airline to disclose its plans on how it intends to cope with the additional burden.

Recently, Emirates also revealed that it faced $169 million in additional costs this year. Emirates also became the first major operator to announce possible surcharges it is going to seek from its passengers. EU’s Emissions Trading Scheme came into effect starting from January 1, 2012.

According to the EU regulations that plans to tackle climate change effectively, airlines taking off or touching down in the 27-nation European Union and three neighboring countries will be accountable for their CO2 emissions as part of an expansion of the world’s largest carbon market.