Air travellers face higher fares as the aviation industry shoulders its share of the climate change burden, experts have warned.
Airlines, manufacturers and aircraft lessors are taking steps to lessen the industry's impact on the climate, including using newly developed sustainable fuel that cuts greenhouse gas emissions.
However, Dick Forsberg, senior aviation finance consultant with accountants PwC Ireland, said developing the new technology needed will cost more money.
“Whilst the additional cost will initially be borne primarily by industry stakeholders, over time they will trickle down to customers, leading to more expensive air fares in the future,” he predicted.
Industry figures and observers expect various measures to ensure aviation pays its share of the cost of tackling climage change to boost air fares.
The EU wants to phase out free emissions trading allowances given to airlines and end tax exemptions aviation fuel, moves almost certain to drive up the cost of flying.
Speaking ahead of the International Society of Transport Aircraft Trading conference on sustainability, jointly hosted by PwC and Airfinance Journal, Mr Forsberg said investors put increasing weight on environmental credentials.
According to Yvonne Thompson, aviation finance leader, PwC Ireland, argued that aviation was not just answerable to shareholders but to customers, workers, suppliers, regulators and the media.
“These broader and more vocal groups are increasingly interested in how environmental, social and governance drives corporate performance,” she said.
Ms Thompson added that it was critical for aviation to ensure it acted on its committment to tackling its impact on the environment.