Air fares to rise on carbon costs

Rating agency Standard & Poor’s said yesterday that air travellers may see fares rise up to €40 (£34) from the end of this year as airlines join the EU’s emissions trading scheme. Additional costs from the scheme are estimated to reach €1.1bn in the first year alone as airlines’ carbon dioxide emissions are capped and they must trade credits to meet any excess. The agency said customers would bear between €4.60 and €39.60 per flight at a €13 price for a tonne of carbon. However, some forecasts have said carbon could reach €75 a tonne.