UK Airlines Warn Fares May Rise (travelradar.aero)
Airlines UK chief executive Tim Alderslade warned Treasury minister Dan Tomlinson that the Carbon Border Adjustment Mechanism, effective January 1, 2027, could increase passenger fares. The policy imposes carbon fees on imported aviation fuel and aircraft materials, adding costs for carriers like British Airways and Virgin Atlantic. Ryanair CEO Michael O’Leary also announced plans to raise fares amid a projected £2 billion fuel bill.
▲1 vote
1 comment
Comments
Sign in to comment. Reading never requires an account.
Worth separating the two pieces here: the UK CBAM that starts on 1 January 2027 covers aluminium, cement, fertiliser, hydrogen, and iron and steel, while bringing refinery products like jet fuel into scope is still a proposal in a Treasury consultation that runs until 20 January 2027 ([1]). The consultation itself says including refinery products would need further legislation and systems work and would be a world first, so the open questions for UK carriers are timing and how default emissions values get set for imported fuel, which will decide how much lands on top of UK ETS, CORSIA, and the SAF mandate.
[1] assets.publishing.service.gov.uk/media/…