Lufthansa fares climb to pay for CO2 scheme

LUFTHANSA, Germany’s biggest airline, is to add €130 million (£109m) to ticket prices to meet the cost of complying with new European rules to control pollution.

It is the first carrier to provide details of how it plans to cope with the European Union Emissions Trading Scheme.

From this year, all airlines touching down or taking off in the EU will have to account for their CO2 emissions.

Airlines and their associations have balked at the scheme and even challenged it in court, saying it further burdens an industry already saddled with soaring fuel prices and national taxes.

Global airlines group IATA has said it estimates the annual industry-wide cost of the ETS will reach €2.8 billion by 2020.

Europe’s highest court last month backed the scheme, meaning all airlines will have to pay for emissions permits, drawing anger from the US and China.