Lisbon, May 20, 2025 (Lusa) - The executive director of the association representing airlines in Portugal (RENA) argues that, given the increase in costs, some flights may become more expensive, as a "deterrent" to short-haul flights.
"We have to be prepared for this because the equation is simple: if the cost of raw materials and charges, particularly taxes and fees, go up, someone will have to bear the burden," António Moura Portugal said in an interview with Lusa.
At issue are costs related to the possible increase in the prices of raw materials and goods due to the tariff war triggered by the US administration and sustainable aviation fuel (SAF).
Since the beginning of the year, Brussels has required all flights to have at least 2% of this sustainable fuel, produced from waste such as used cooking oil. This target will gradually increase over the coming years.
The association's executive director has no doubt that "companies will have to meet the targets. The question is at what cost and to what extent this will then have to be passed on to third parties," he added.
"Looking at the airlines' balance sheets, projections and results, we see that it is impossible for them to accommodate this fully or permanently."
Following this line of thinking, "looking into the future", he says that some trips may become more expensive, especially short ones, "even as a disincentive".
"Today we have [destinations] such as London, Paris and Madrid, which are very important for our airport, [which are operated] with smaller aircraft. It would be desirable to have a greater weight of intercontinental travel by larger aircraft, because it means that the same “slot” [time slot for landing and taking off] would be occupied by an aircraft that instead of carrying 120 people might carry 240," he explained.
Asked whether this price increase will also be implemented by low-cost airlines, he said that "they can only be low-cost in terms of fares, because they still pay taxes and fees like all other airlines. Therefore, what may also happen is that travellers will become more aware of what they are paying. Which I think is desirable," he commented.
With regard to the carbon tax charged to air passengers, for the first time part of the revenue will go back to the aviation sector.
The details are not yet known, but the executive director of RENA applauds the measure approved last year that provides for the transfer of a maximum of €40 million to decarbonisation activities in the civil aviation sector, particularly in support of sustainable fuel production.
"Since the tax exists, and although we contest its existence because we believe it is not efficient, at least part of the 60 million it raises should be returned to the sector. And revert to the sector does not mean to the companies' pockets, but to policies that can help sustainability," such as making SAF production in Portugal more accessible and "creating conditions for Portugal to play a pioneering role," he stressed.
The carbon tax came into force in July 2021 to offset emissions from the aviation sector.
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