Airline Passengers and the Cost of Decarbonization: What You Need to Know

The aviation industry is facing its next major challenge: decarbonization. With the goal of neutralizing the carbon emissions of thousands of planes that transport billions of passengers each year, airlines are looking for ways to fund the monumental task. Unfortunately, it seems that the burden of decarbonization may fall on the shoulders of passengers, potentially driving up the cost of air travel. In this article, we will delve into the plans of the aviation sector to pass along the cost of decarbonization and explore the potential impact on flight prices.

The Scale of the Challenge

Decarbonizing the aviation industry is no small feat. There are approximately 25,000 planes in the world’s commercial fleet, which collectively transport over 8 billion passengers annually. These planes burn close to 100 billion gallons of jet kerosene, resulting in significant carbon emissions. To neutralize these emissions, the industry needs to find effective solutions and implement them on a massive scale.

Sustainable Aviation Fuel

One of the key strategies for decarbonization is the use of Sustainable Aviation Fuel (SAF). SAF is a type of biofuel made from renewable sources such as plant-based materials and waste products. It can be blended with traditional jet fuel or used as a standalone fuel. SAF has the potential to significantly reduce carbon emissions compared to conventional jet fuel, making it an attractive option for the aviation industry.

The Cost of Decarbonization

While SAF shows promise in reducing carbon emissions, it comes with a hefty price tag. Producing SAF is currently more expensive than traditional jet fuel, mainly due to limited production capacity and economies of scale. As a result, airlines are looking for ways to offset the higher cost of SAF, and one potential solution is to pass it along to passengers.

Potential Impact on Flight Prices

If the aviation sector decides to pass on the cost of decarbonization to passengers, it could lead to an increase in flight prices. The exact amount would depend on various factors, such as the percentage of SAF used, the price of SAF compared to traditional jet fuel, and the willingness of passengers to pay the additional cost. However, some estimates suggest that the price of certain flights could increase by hundreds of dollars.

The Future of Decarbonization

While the cost of decarbonization may seem daunting, it is a necessary step towards a more sustainable aviation industry. As technology advances and economies of scale come into play, the cost of SAF is expected to decrease. Additionally, research and development efforts are underway to explore alternative fuels and propulsion technologies that could further reduce carbon emissions. The future holds promise for a greener and more environmentally friendly aviation sector.

As we move forward with decarbonization it is important to analyze the real-world impact of both carbon credits and SAF. Delta Airlines, a major player in the airline industry, recently found itself facing a lawsuit over the acquisition of faulty carbon credits. This incident has significant implications for the decisions airlines make regarding the use of carbon credits versus SAF. Carbon credits have long been seen as a way for airlines to offset their emissions by investing in renewable energy projects. However, the lawsuit against Delta highlights the risks associated with relying on poor-quality carbon credits. It emphasizes the importance of considering alternative solutions like SAF, which offer a more direct and reliable means of reducing emissions. This incident may prompt airlines, including Delta, to reevaluate their strategies and prioritize SAF over carbon credits to mitigate reputational and legal risks associated with flawed offsets.

Conclusion

Decarbonizing the aviation industry is a monumental task that requires significant investment and collaboration. While the burden of decarbonization may fall on the shoulders of passengers initially, it is important to recognize the long-term benefits of a more sustainable aviation industry. With real-world incidents like Delta’s, the industry may consider increased scrutiny of carbon credits, as well as a greater emphasis on the development and use of Sustainable Aviation Fuel. By embracing solutions like Sustainable Aviation Fuel and working together, stakeholders can pave the way for a greener and more environmentally friendly future of air travel. So, the next time you book a flight, remember that your ticket may not only take you to your destination but also contribute to a cleaner planet.

This article was written by Kiera Phipps (Operations Associate, Entoro).