Lufthansa: get ready for higher fares

Airline is first to announce possible surcharges since EU scheme began

Lufthansa has warned passengers to expect higher ticket prices in the near future as it faces €130 million in extra costs in 2012, including additional costs from the EU’s Emissions Trading Scheme, which now applies to airlines. Lufthansa is the first major airline to announce possible surcharges for passengers since the EU scheme took effect on January 1. It would be in addition to the airline’s existing fuel surcharge.
Major airlines such as Lufthansa, IAG, Air France-KLM, United Continental and Singapore Airlines will be severely affected by the scheme.
“In the face of intensive competition, especially from companies from non-EU countries whose production is subject to emissions trading to only a small degree, Lufthansa will have to pass on the burden via ticket prices, as suggested by the EU,” the airline said.
Reuters
[pictured: Lufthansa Europakabine; courtesy Lufthansa]

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