A switch to green fuel to power passenger flights will push up the cost of flights and holidays, according to the boss of British Airway’s parent company.
Luis Gallego warns that the switch will “have a big impact” and effectively price some people out of flying.
He told the Financial Times: “Flying is going to be more expensive. That is an issue, we are trying to improve efficiency to mitigate that, but it will have an impact on demand.”
Mr Gallego blamed a requirement that European airlines must ensure that 6 percent of jet fuel should come from sustainable sources by 2030.
This is more stringent than operators in other parts of the world.
Sustainable Aviation Fuel (SAF) is made from a range of non-fossil fuel sources, from waste cooking oil to crops, and can emit 70 percent less carbon dioxide than traditional jet fuel.
IAG itself used 12 per cent of the world’s SAF last year across its five airlines, which include British Airways, Iberia and Aer Lingus.
Airlines have called for more government support in the UK and EU to increase the supply of SAF and drive down costs for consumers.
Mr Gallego said: “The reality is we do not have [enough] SAF, and the SAF we have is very expensive.”
Last month, Lufthansa became one of the first airlines to announce a surcharge on tickets to fund cleaner fuels and decarbonisation.
It will charge a fee of between €1 and €72 per ticket from next year.
