What You Need to Know About Lufthansa’s ‘Environmental Cost Surcharge’

Lufthansa has introduced an ‘Environmental Cost Surcharge’ for tickets booked for flights departing on or after January 1, 2025. This surcharge, ranging from €1 to €72 based on the flight route, is being implemented to offset the increasing costs linked to compliance with environmental regulations mandated by the European Union.

These regulations include meeting a two percent Sustainable Aviation Fuel blending quota, the EU Emissions Trading System (EU ETS) adjustments, and participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The additional cost will be added to flights departing from all 27 EU member countries, as well as Norway, Switzerland, and the UK.

Photo: Lufthansa Group airlines. Courtesy of Lufthansa

All flights operated by the Lufthansa Group carriers — which includes Austrian Airlines, Brussels Airlines, Lufthansa City Airlines, Discover Airlines, Eurowings, Air Dolomiti, and Swiss Air Lines  – will be subject to the charge.

“The airline group will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own. In a statement, ” part of these expected costs for 2025 are now to be covered by the new Environmental Cost Surcharge,” Lufthansa said.

Customers may be disappointed that more airlines could follow Lufthansa’s example in passing on EU-mandated environmental taxes. Several airlines, including British Airways, Singapore Airlines, and Qantas, have set targets to operate up to 10 percent of flights using sustainable aviation fuel by 2030. This is a milestone on the path to achieving ‘net zero’ emissions by 2050, which heavily depends on the increased use of sustainable aviation fuel.

Photo: Lufthansa, Airbus A319. Courtesy of Fraport – Frankfurt Airport

Sustainable aviation fuel is an alternative to fossil fuel, typically made of nonfood crops, waste oil, fats, and other waste materials. However, the widespread use of sustainable aviation fuel currently comes at a cost, which is expected to rise. The sustainable aviation fuel quota is set to increase to 2 percent by 2025, 6 percent by 2030, 20 percent by 2035, and 70 percent by 2050. Lufthansa estimates that this will cost them billions in the future, which will likely result in higher costs for passengers in the years to come.

The increased environmental costs are already evident in Lufthansa’s introduction of ‘Economy Green’ fares, which promise “more sustainable flying through sustainable aviation fuel and emissions offsetting” while offering passengers a few perks in the form of points. However, these environmentally friendly fares can cost approximately €65 ($69.89) more than a standard Economy Light fare.

With travel costs on the rise, passengers may be disheartened to learn that an environmentally friendly aviation industry could further burden their wallets.