GregLocock
Automotive
- Apr 10, 2001
- 23,695
Net zero could make flying “something for the privileged”, the boss of Qantas has warned.
Vanessa Hudson, the chief executive of the Australian flag carrier, said the higher costs associated with clean fuel were likely to push up air fares and could put them out of reach of the masses.
Her warning came as the boss of Airbus said net zero would add a “green premium” to plane tickets and reverse the decades-long trend of flying getting cheaper over time.
Guillaume Faury said that the price of sustainable aviation fuel (SAF), which is regarded as key to slashing aviation carbon’s footprint, may never match that of traditional kerosene.
He said: “Is it going to be as cheap as jet fuel? I don’t think so. I think there will be a price to pay for decarbonised fuels.”
The public will feel the squeeze through a “green premium” as airlines are compelled to use an ever-increasing proportion of SAF over the coming decades, he added.
Britain has issued a mandate for carriers to use at least 10pc SAF by 2030, one of the most stringent requirements in the world. The EU target by the same year is 6pc.
Mr Faury said: “Increasing the percentage of SAF will raise pricing. What we have seen with pricing going down very significantly is not necessarily what we will see from the future.”
Airlines may be able to absorb some of the costs of SAF, with relatively modest increases in ticket prices following sharp fluctuations in the price of oil.
However, Ms Hudson warned that flying could become something “so expensive that it’s something for the privileged” if costs were passed on in full, adding: “I don’t want to see that.”
She said Qantas is opposed to mandates that would force airlines to hike fares and said such a move would be counterproductive, weighing on global connectivity and hence economic growth.
While price rises may be necessary, “there’s a big difference between five times and 1.5 times,” she said, pointing to the uncertainty around fuel costs. Qantas has a joint venture with Airbus on SAF production.
SAF currently costs three to five times as much as kerosene but is seen as the only realistic route to achieving the aviation industry’s target of net zero carbon emissions by 2050.
The high price and low production volumes mean the fuel last year made up less than 1pc of industry-wide fuel consumption.
However, governments around the world are betting on a sharp increase in production and usage of the fuel to meet net zero goals. SAF, which is most commonly derived from used cooking oil sourced from Asia, can reduce the so-called life-cycle CO2 emissions by around 80pc compared with traditional jet fuel.
Vanessa Hudson, the chief executive of the Australian flag carrier, said the higher costs associated with clean fuel were likely to push up air fares and could put them out of reach of the masses.
Her warning came as the boss of Airbus said net zero would add a “green premium” to plane tickets and reverse the decades-long trend of flying getting cheaper over time.
Guillaume Faury said that the price of sustainable aviation fuel (SAF), which is regarded as key to slashing aviation carbon’s footprint, may never match that of traditional kerosene.
He said: “Is it going to be as cheap as jet fuel? I don’t think so. I think there will be a price to pay for decarbonised fuels.”
The public will feel the squeeze through a “green premium” as airlines are compelled to use an ever-increasing proportion of SAF over the coming decades, he added.
Britain has issued a mandate for carriers to use at least 10pc SAF by 2030, one of the most stringent requirements in the world. The EU target by the same year is 6pc.
Mr Faury said: “Increasing the percentage of SAF will raise pricing. What we have seen with pricing going down very significantly is not necessarily what we will see from the future.”
Airlines may be able to absorb some of the costs of SAF, with relatively modest increases in ticket prices following sharp fluctuations in the price of oil.
However, Ms Hudson warned that flying could become something “so expensive that it’s something for the privileged” if costs were passed on in full, adding: “I don’t want to see that.”
She said Qantas is opposed to mandates that would force airlines to hike fares and said such a move would be counterproductive, weighing on global connectivity and hence economic growth.
While price rises may be necessary, “there’s a big difference between five times and 1.5 times,” she said, pointing to the uncertainty around fuel costs. Qantas has a joint venture with Airbus on SAF production.
SAF currently costs three to five times as much as kerosene but is seen as the only realistic route to achieving the aviation industry’s target of net zero carbon emissions by 2050.
The high price and low production volumes mean the fuel last year made up less than 1pc of industry-wide fuel consumption.
However, governments around the world are betting on a sharp increase in production and usage of the fuel to meet net zero goals. SAF, which is most commonly derived from used cooking oil sourced from Asia, can reduce the so-called life-cycle CO2 emissions by around 80pc compared with traditional jet fuel.
