The Centre for Aviation (CAPA) report indicates steep cost increases for airlines as emission reduction measures are introduced or strengthened, including higher carbon pricing and mandated blending of sustainable aviation fuels.
The report found that multiple airlines could fail in just the next three to five years if they do not have the financial strength to invest in decarbonisation or misjudge the need to accelerate their climate mitigation plans.
This is because carbon offsets for airlines will likely become increasingly uneconomic or unavailable, with offset prices rising with broader demand for decarbonisation and tighter criteria for legitimate offsets.
It also predicts that corporate customers and investors will increasingly demand more reliable data on decarbonisation and proof of meaningful action, to make informed decisions on purchasing or investment.
Aircraft fleet age was found to have a clear impact on aviation emissions. If the average...