SINGAPORE Jan 4 Airlines in the Asia
Pacific region may impose surcharges or increase airfares
following the imposition of the European Union's new Emissions
Trading Scheme (ETS), a move that could deal another blow to an
industry already facing weak demand.
The possible increases would come after Delta Air Lines
in the United States, that country's second-largest
carrier, slapped a $3 surcharge each way on tickets purchased
for flights between the United States and Europe.
"It is inevitable that increased costs will be passed on to
the passengers. We will share the details at appropriate time,"
said Carolyn Leung, a spokeswoman for Hong Kong's Cathay Pacific
Cathay's chief executive, John Slosar, said previously that
the ETS would add about HK$50 ($6.44) to a ticket between Hong
Kong and Europe.
Singapore Airlines Ltd (SIA), the world's
second-largest airline by market value, said it will try to
mitigate the impact of the ETS by improving fuel efficiency and
reducing its carbon emissions, which would lower the carbon
"However, we are not yet ruling out any options for
recovering the additional cost," SIA's spokesman Nicholas
Ionides said in an email.
Tony Tyler, director general of the International Air
Transport Association (IATA), has said the ETS would cost
airlines 900 million euros ($1.15 billion)in 2012 and the
industry will not generally be able to pass this on to consumers
because the market is too weak.
The IATA forecast a 49 percent fall in 2012 industry-wide
profit to $3.5 billion on the back of a weak global economy and
stubbornly high fuel prices.