Sustainability goals could hike up travel prices

Eco goals are hiking up airfare prices.
model planes on orange background


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It might be a good idea to build in some wiggle room in your travel budget. As the airline industry moves toward reducing emissions to net zero by 2050, it could cost passengers more to fly.

Willie Walsh, the director general of the International Air Transport Association, which includes most of the world’s biggest airlines called for speedier production of greener sustainable aviation fuel (SAF).

Walsh explained, “You cannot expect an industry making on average $1 profit per customer to absorb the increases we’ve seen…there has to be an impact on ticket prices as the industry transitions to net zero.”

While the US has passed legislation, like the US Inflation Reduction Act, to subsidize and provide tax credit incentives to airlines making green changes, the European industry hasn’t taken the same approach. They view the legislation as unfair, and the moves to make European airports get their hands on sustainable fuel aren’t realistic since SAF isn’t widely available. 

Environmental groups think the increased airfare costs might help the environment in the end. The increased airfare costs will deter people from traveling via plane and thereby reduce emissions.

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