Willie Walsh warns that shift to greener fuels will push up airfares

Willie Walsh, DG of the IATA, has warned that fares will rise as airlines implement measures to hit sustainability targets in coming years. He also warned that fares may rise in the short term this year as oil prices hit multi-year highs in 2022. In a video interview with the Irish Tourist Industry Confederation that will be circulated among its members on Wednesday, Walsh heralded sustainable aviation fuel, a less environmentally damaging fuel mix that is blended with aviation’s traditional fuel of kerosene, as a “game changer”. “The problem with [such fuel] is the cost,” Walsh said. He said the greener fuel was “2½ times as expensive” as traditional aviation fuel. Considering the proportion of a typical airline’s costs go on fuel – about 25% – it is “clearly going to have an impact on price” as many airlines turned to sustainable fuel to help them hit carbon reduction targets, he said. Walsh called on governments to provide more incentives to airlines to “decarbonise” their operations. He suggested that State incentives to decarbonise road transport, which is “much easier” to achieve than reducing aviation emissions, should be redirected to the aviation industry.<br/>