Airlines could make billions of pounds following the inclusion of aviation in European emissions trading despite small reductions in air traffic that higher ticket prices would bring, two separate reports warn this week.
The aviation sector stands to make a profit of £2.7bn or £3.5bn if carbon credits are given out for free and generous emission allowances allocated, according to reports published by the ippr and the WWF respectively. The EU is expected to make a decision on the issue on Wednesday.
Airlines are likely to pass the full cost of the credits onto passangers, leading to slight ticket price increases insufficient to restrain the sector’s growth, the two organizations said.
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