The Smart Marty Sky Dispatch
IAG chief warns accelerating green charges could “kill European aviation” as fuel mandates and carbon costs mount
Key highlights 1. IAG's warning: CEO Luis Gallego warns that the speed and cost of planned European green aviation charges could “kill European aviation” and undermine the competitiveness of European airlines. 2. SAF supply shortages: Airlines face increasing sustainable aviation fuel (SAF) blending obligations despite limited production capacity and insufficient affordable supplies. 3. Rising operating costs: SAF can cost three to five times more than conventional jet fuel, adding financial pressure to already significant airline fuel expenses. 4. Increasing regulatory burden: European carriers face multiple environmental obligations, including SAF mandates, carbon emissions trading and th…
IAG chief Luis Gallego has warned that the pace and cumulative cost of Europe’s planned environmental charges on airlines could seriously undermine European aviation’s competitiveness.
The remarks come as European carriers confront growing requirements around sustainable aviation fuels (SAF) blending mandates, along with carbon emissions trading and the phased removal of free carbon allowances.
Industry observers note SAF supply challenges, including limited production capacity and a lack of affordable supplies to meet increasing blending obligations, according to the material.
Gallego argues that accelerating green charges ahead of adequate fuel production and infrastructure could raise operating costs and potentially affect ticket prices, routes, and hub operations.
Key points highlighted include SAF blending obligations, rising costs from SAF compared with conventional jet fuel, and the broader regulatory burden facing European carriers.
The material indicates that European airlines risk losing competitiveness to international carriers operating under less stringent environmental regulations, with potential implications for pricing and network choices.