Lufthansa increases ticket prices by as much as $77 to cover environmental expenses.

• Lufthansa Group announced on Tuesday that it plans to impose an "environmental cost surcharge" on ticket prices starting this week.
• Lufthansa Group charges between 1 euro and 72 euros for most flights departing from Europe.
• Lufthansa stated that the extra fee was necessary to cover the increasing expenses resulting from environmental regulations.

Lufthansa Group announced on Tuesday that it will impose an "environmental cost surcharge" on ticket prices starting this week, with some flights having a maximum charge of 72 euros ($77).

Lufthansa stated that the surcharge is aimed at covering some of the increasing extra costs resulting from regulatory environmental requirements, as specified by the European Union and International Civil Aviation Organization.

The additional cost will be applied to fights departing from any of the 27 member countries of the European Union, as well as the U.K., Norway and Switzerland, Lufthansa announced. All flights sold or operated by Lufthansa Group, which owns airlines including Lufthansa, Eurowings, Swiss and Edelweiss Air and Austrian Airlines, will be subject to the charge.

Lufthansa stated that the surcharge amount for flights varies based on the route and fare and ranges from 1 euro to 72 euros. Customers can see the exact amount during the booking process.

Lufthansa announced that a fee will be applied to all tickets issued from June 26, 2021, that are for flights departing from January 1, 2025.

Environmental regulations

Lufthansa stated that several regulations from institutions, including the EU, would increase airlines' costs.

The EU has established quotas for the use of sustainable aviation fuel, which will be implemented in 2025 and gradually increase until 2050.

An alternative to fossil fuels in aviation is sustainable aviation fuel, which can be made from waste oil and fats, non-food crops, and other waste materials, as well as through a process that captures carbon from the air.

The aviation industry could achieve around 65% of the emissions reduction needed to reach net zero by 2050 through the use of sustainable aviation fuel, according to the International Air Transport Association.

Lufthansa stated on Tuesday that the quotas would result in additional costs in the billions in the future.

The company mentioned the emissions trading systems from the EU, Switzerland, and U.K. as a contributing factor to its rising environmental costs. These programs regulate and limit the amount of allowed emissions, with the overall cap decreasing over time with the aim of lowering emissions.

Lufthansa stated that the International Civil Aviation Organization's climate protection agreement, which aims to regulate emissions, was also a factor.

Lufthansa announced that it is investing heavily in technology to promote sustainability in aviation and support climate research.

The airline group will not be able to cover the increasing additional costs resulting from regulatory requirements on its own, and part of these costs for 2025 will be covered by the new Environmental Cost Surcharge, the company stated.