Europe’s largest airlines have urged the European Union (EU) not to expand its Emissions Trading System (ETS) to include international flights, warning in a letter seen by Reuters that such a move would drive up ticket prices.
The European Commission is weighing an expansion of the ETS to cover emissions from flights departing the EU, as part of a review due next month. Currently, the scheme applies only to flights within Europe.
The system obliges airlines, factories, power plants, and other emitters to purchase permits for greenhouse gases, while limiting the overall supply to ensure emissions fall over time.
In a letter to European Commission President Ursula von der Leyen, seen by Reuters, the chief executives of Air France‑KLM (AIRF.PA), British Airways‑owner IAG (ICAG.L), Lufthansa (LHAG.DE), and Ryanair (RYA.I) voiced opposition to widening the scheme.
“Expanding EU carbon pricing to extra-EEA (European Economic Area) flights will further penalize European passengers and businesses by increasing the cost of airfare and cargo,” they noted.
The letter was also endorsed by the heads of 15 companies, among them AirBaltic, easyJet (EZJ.L), and TUI (TUI1n.DE). Its release coincides with airline leaders gathering in Rio de Janeiro for the annual meeting of the International Air Transport Association (IATA).
The letter argued that EU action would undermine global efforts to decarbonize aviation, particularly the United Nations’ CORSIA scheme, which obliges airlines to purchase CO₂ offsets for growth in emissions from international flights but does not require absolute cuts.
“Any extension of EU ETS will hamper the legitimacy of CORSIA the letter warned, urging Brussels to align ETS costs with CORSIA levels.
The Commission argues that extending the ETS would ensure equal treatment among airlines and prevent short‑haul carriers from being disadvantaged compared with operators of longer international routes. Brussels also doubts that CORSIA alone can deliver decarbonization: a 2021 study for the Commission warned the UN scheme was unlikely to cut emissions and risked undermining Europe’s climate goals.
