British Airways owner warns green charges will ‘kill’ aviation industry and hike fares

IAG chief executive Luis Gallego says planned sustainable aviation fuel requirements could raise fares and put European airlines at a disadvantage to global competitors. He argues that the targets depend on fuel that is not yet available in sufficient quantities, risking higher costs without achieving their environmental aims.

UK airlines currently have to use 3.7 per cent sustainable aviation fuel, with the share due to rise next year and reach 10 per cent by 2030. Ministers are consulting on requiring UK carriers to buy more expensive fuel made from non-food waste or electricity. IAG, which owns British Airways, Aer Lingus and Vueling, reported pre-tax profit of €3bn for the first nine months of the year, down 16 per cent, citing higher jet fuel prices after the Strait of Hormuz closed.