Delta to Add Surcharge to Cover European Carbon Emissions Scheme

Delta Air Lines, following Lufthansa’s announcement on Jan. 3, is passing on to consumers the cost of the European Union’s controversial emissions trading scheme (ETS), in which the EU charges airlines on carbon emissions for flights to and from Europe. Delta said that as of Monday, Jan. 9, it is adding a $3 surcharge each way on fares bought in the U.S. for flights between the U.S. and Europe.

Lufthansa said on Jan. 3 that it estimates that the ETS certificates will cost it 130 million euros this year and that will be reflected in higher ticket prices. Some industry observers expect the ETS will raise fares between the U.S. and Europe by between $50 and $90.

Airlines across the globe are protesting the ETS. For example, Airlines for America (A4A), the U.S. airline industry group, is one of several entities that has challenged the EU law and says it is reviewing its legal options. The group has estimated that the emission law could cost the U.S. airline industry $3.1 billion from 2012 through 2020.

Airlines and airline groups such as the International Air Transport Association (IATA) and A4A support a global sectoral approach as laid out by the International Civil Aviation Organization (ICAO), the United Nations body that sets standards for international aviation. The EU’s ETS extends a six-year-old carbon emissions policy that the EU applies to on-the-ground businesses such as utilities and industry.

Airlines and aviation groups have challenged the ETS in court, arguing that aviation greenhouse gas (GHG) emissions should be regulated on a global sectoral basis. A4A also opposes the application of the EU’s ETS to U.S. airlines, since it imposes an exorbitant tax that takes away from aviation the very funds it needs to continue to invest in aircraft technology, sustainable alternative fuels and infrastructure advances to build on its strong record of fuel efficiency improvements and emissions savings.