Flights to and from Europe and the UK are set to become more expensive than ever in January, with taxes added to accommodate environmental initiatives, but while passengers might complain, it’s unlikely that it will have any large impact on travel from South Africa.
Earlier this year, executives from Virgin Atlantic and Lufthansa warned the public that they would be implementing a green surcharge of up to €72 (R1 410) per flight to cover the cost of sustainable aviation fuel (SAF), the use of which has been mandated by the EU. The mandatory SAF blend quota is 2% of SAF on EU departures by 2025, as reported by Travel News.
In addition to the expensive use of SAF, the EU has made adjustments to the Emissions Trading System that allows corporations to buy emission allowances when they exceed the emission cap mandated by the region, forcing airlines to use more expensive fuel, or pay the price of higher emissions, all of which will increase flight costs.
“Flying is going to be more expensive. That is an issue. We are trying to improve efficiency to mitigate that, but it will have an impact on demand,” said IAG CEO, Luis Gallego, in response to the regulatory changes.
A recent Travel News poll revealed that 70% of respondents believed the 2025 environmental levy could put Europe trips out of reach for some leisure travellers.
However, there are many clients who will reluctantly swallow the bitter pill and accept the taxes.
Local travel agent Alwin Miles-Nell said the added tax came at a time when costs were at an all-time high. “While some budget-conscious travellers may be sensitive to this increase, many are already paying elevated prices due to rising travel costs.”
Miles-Nell doesn’t expect the tax to stifle demand. “Some may look for alternative destinations, or perhaps even consider ‘cheaper’ airlines or shift to off-peak seasons but, overall, this added levy is unlikely to significantly deter travel. Eco-conscious travellers might even welcome the tax as it supports sustainability efforts.”
“At the end of the day, it’s basically just another airline tax,” said travel agent Kerith Hulme. She added that the charge would likely push people to book airlines that weren’t charging the tax, but that it would not put Europe trips out of reach. “Travel costs are going up all the time and people who book travel to Europe and the UK are already usually high spenders.”
Jenni Davis, of tour operator British TIPS, told Travel News that while the added tax would not financially write off those who could already afford the price of travel, the mental impact of the added taxes was starting to take a toll on the South African market.
“I think if you’re going to travel, you’re going to travel, but travellers are getting tired of these extra charges. With all these extra costs, people are starting to feel taken advantage of.”
She said that the environmental surcharge had been creeping into the world of hospitality as well and she had seen hotels adding an extra charge for environmental initiatives in the UK.
“The environment is important and travellers understand that, but the impression I get is that people are fed up. They feel like they’re being milked for money at every turn.”