IBA Group reposted this
With ReFuel EU's SAF mandate looming and EU ETS free allocation reducing again in 2025, European low-cost airlines are feeling the sharp and costly end of the EU's climate policies. A bad time then for the French Air Solidarity Tax to increase by up to 15x? Myself and William McClintock took a look at the impact of the proposed changes, leveraging IBA Group data to assess the tax's potential revenue and its relative impact on the cost bases of low-cost airlines. 💸 Will the increasing costs add to the struggles of European airlines in return for a better funded French SAF market? 🐘 Or is it designed to address the elephant in the room, and induce some demand management in the short term while SAF is being scaled? Using historical cost vs. demand growth in the European market, we attempt to surmise which of these is more likely. Either way, without earmarking the tax revenues for a specific purpose, or even labelling the tax as a climate-related policy, this news appears to have added to a feeling of airline concern in meeting carbon market compliance or being able to engage with SAF producers on offtakes and investments. For more detail: https://lnkd.in/eGvFpNUM #Sustainability #SAF #EUets #Aviation #Airlines #Travel