13-Oct-2009 1:03 PM

Lufthansa and Air France-KLM looking to limit costs for carbon emission permits

Lufthansa and Air France-KLM are reportedly looking to limit the costs they will have to pay for carbon emission permits under the EU’s climate change programme, to be launched in 2012 (Bloomberg, 12-Oct-2009). Lufthansa reportedly plans to purchase futures contracts to limit costs by EUR250 million p/a. Lufthansa’s emissions are expected to be around 40% higher than the permitted levels, potentially forcing it to spend between EUR200 million and EUR300 million p/a on permits. Meanwhile, Air France plans to use financial contracts to cap permit costs at approximately EUR100 million p/a. 

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More