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Willie Walsh, Director General of the International Air
Transport Association, which includes most of the world's major
airlines, called for swifter action in Europe to drive up scarce
production of greener Sustainable Aviation Fuel (SAF).
Air fares have already jumped this year as a result of higher
prices for conventional fossil-based jet fuel.
"You cannot expect an industry making on average $1 profit per
customer to absorb the increases we’ve seen," Walsh told
reporters at an annual media briefing.
"Going forward as we see increases in carbon costs...there has
to be an impact on ticket prices as the industry transitions to
net zero. The airlines cannot absorb increased costs."
Environmental groups argue that air higher travel costs will
help to rein in emissions by curbing growth in traffic.
Walsh praised efforts by the United States to lift output of
clean fuels, in apparent contrast with European objections that
new U.S. incentives could create an uneven playing field.
"In the U.S. it is recognised that Sustainable Aviation Fuels
are part of the answer and they are heavily focused on
additional production," Walsh said.
He dismissed as "nonsense" European Union moves to oblige
airports to offer increasing supplies of SAF, which is not
widely available.
"Europe's answer to the problem penalises people," he said.
In July, the European Parliament backed rules on aviation fuel
that set binding targets for the replacement of kerosene with
less polluting sources, while extending the definition of what a
green fuel could be.
In the United States, the Biden administration has launched a
government challenge to supply at least 3 billion gallons of SAF
per year by 2030.
The airline sector is considered one of the most difficult to
decarbonise as fuel for flights cannot be easily replaced with
other kinds of power.
This year's U.S. Inflation Reduction Act includes significant
subsidies to the SAF industry in the form of tax credits, but
European industry leaders including the head of planemaker
Airbus have said the legislation is unfair.
(Reporting by Emma Farge, Editing by Tim Hepher and Louise
Heavens)
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