Airlines ‘Made Billions in Windfall Profits’ From EU Carbon Tax
Report states carriers earned up to €1.36bn last year, despite claims that charge would impose crippling costs on industry.
Airlines made windfall profits of up to £1.2bn ($1.81bn) last year from a EU carbon tax they claimed would impose crippling costs on industry, according to a report into the measure’s impact on the industry.
The EU backed off on plans to charge airlines for their carbon pollution after ferocious opposition from American, Chinese, Russian and other airlines, which argued the charge would cost the industry billions.
Congress passed a law last November shielding US carriers from paying the tax. The lobby group, Airlines for America, claimed at the time that the EU law would cost more than $3bn by the end of the decade.
Now, it turns out, airlines made €872m from the carbon tax – plus an additional €486m when the EU agreed to hold off collecting the fee for a year, according to the report compiled by the Dutch consulting firm CE Delft.
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