In Belgium, Reuters reported that European airline chiefs said that the industry needs to make more money and may consolidate further to pay for sustainability targets, a trend likely to lead to higher fares for passengers.
The head of British Airways parent IAG said that there was a more than a 90% risk that the industry would not meet a European Union mandate for the availability of sustainable aviation fuel in 2025.
The report explained that the European Union has adopted rules requiring flights departing from EU airports to carry a progressively increasing amount of SAF, starting with 2% of total fuel in 2025.
Gallego said Europe’s tougher rules, compared to other regions, risked making its fragmented industry less competitive, putting pressure on airlines to continue a recent wave of partnerships.
“The problem we have in Europe is we have a small group or a small airline competing in a global war with mandates of sustainability that are ahead of others. We are not going to be competitive,” Gallego said.
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