Major European airlines are each exposed to a hit of at least an additional €1.5bn in costs if Brussels extends carbon pricing to flights leaving the EU, based on analysis of a proposal to curb greenhouse emissions.
The FT reported earlier this month that the EU was considering extending its emissions trading system (ETS) to cover flights departing from the bloc, as it revises the system that underpins Europe’s push to decarbonise its industries.
But the move would probably add to costs as airlines grapple with challenges, including high jet fuel prices, and could stoke trade tensions with the US.
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