More costly flights inevitable amid green transition

Switch to expensive sustainable aviation fuel will see carriers charging higher fares

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The global airline industry has long warned passengers they will eventually have to pay some of the US$5 trillion (S$6.7 trillion) cost of decarbonising air travel. The moment has come.

The Singapore Government has announced a tax on air fares to fund purchases of pricey sustainable aviation fuel, while Malaysia has authorised carriers to charge people a carbon levy from April.

In Europe, airlines in 2024 lose one-quarter of their free emissions allowance, the first in a series of reductions that is already estimated to be adding to ticket prices.

"We've entered a new era," said Mr Rico Luman, a transport, logistics and automotive economist at ING Groep in Amsterdam.

"Flying will turn more expensive." While the policies differ from country to country, the common goal is to clean up an aviation industry that for a century has relied on fossil fuels to function. Airline chiefs fret that unless they show they're serious about cutting emissions right now, they will face fines, flying limits or - worst of all - be grounded completely.

Sustainable cleaner-burning liquid made from waste oils or agricultural feedstock, is the industry's primary means of hitting its 2050 net-zero target.