For those who monitor airfares, there’s going to be a new surcharge that Lufthansa Group will be putting on fares – and an Environmental Cost Surcharge
Soon with additional surcharges – Image, Economy Class and Beyond.
According to Lufthansa Group, the surcharge is intended to cover part of the steadily rising additional costs due to regulatory environmental requirements.
These include the statutory blending quota of initially two percent for Sustainable Aviation Fuel (SAF) for departures from European Union (EU) countries from January 1, 2025, adjustments to the EU Emissions Trading System (EU ETS) as well as other regulatory environmental costs such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Where it it is being applied?
The Environmental Cost Surcharge applies to all flights sold and operated by the Lufthansa Group departing from the 27 EU countries as well as the UK, Norway and Switzerland.
The Lufthansa Group in this case includes all member airlines – Lufthansa, Brussels Airlines, Austrian Airlines, Air Dolomite, Lufthansa City Airlines, Discover Airlines, Eurowings, Lufthansa CityLine, SWISS International Air Lines and Edelwiss Air.
Cost
The amount of the surcharge varies depending on the flight route and fare and is between 1 euro and 72 euros. The exact amount of the Environmental Cost Surcharge is shown on the Lufthansa Group Airlines booking pages in the price details.
The Environmental Cost Surcharge will be levied on all tickets issued from June 26, 2024 and applies to departures from January 1, 2025.
So where is that money going?
Those costs are going into meeting the additional costs resulting from regulatory requirements in the coming years. Put simply, it is to pay to meet legislative requirements.
Remember, Sustainable Air Fuel has a much higher cost pressure than normal Aviation fuel. With the EU planning to mandate higher SAF blends (2 percent from 2025, 6 percent from 2030, 20 percent from 2035 and 70 percent from 2050).
For the Lufthansa Group, this will lead to additional costs (which it estimates in billions)….which it is planning to pass on to you, the customer.
Another unwelcome cost of flying
And if I’m going to be blunt – one that other airlines will want to employ as they attempt to meet mandates.
Lufthansa Group has tried things like “Green Fares”, which have a higher cost to offset some of the costs – and whilst the uptake was good – it seems this money wasn’t enough… and its time to go to the rest of its customers to meet the costs of these fuels and environmental objectives.
Watch your fares when booking, especially for departures next year.
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