Lufthansa says EU carbon plan will raise prices

GERMANY’S Lufthansa told passengers yesterday to brace for higher ticket prices as it refuses to shoulder the costs of a carbon trading scheme at the centre of a brewing trade spat.

The world’s second largest long-haul carrier said it faced €130m (£108m) in extra costs this year and became the first major operator to announce possible surcharges since the EU scheme took effect on 1 January. The increases will not go into effect straightaway.

Under EU plans, airlines touching down or taking off in the EU and three neighbouring nations must account for their CO2 emissions.