Ryanair to pass EU ETS costs on to passengers

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Irish budget carrier Ryanair has become the latest airline to introduce a passenger levy to cover its compulsory inclusion in the European Union's Emissions Trading System (ETS).

The airline on 17 January will introduce an additional £0.25 ($0.38) per passenger charge on each one-way booking to cover what it described as "the EU's new eco-looney ETS tax".

Ryanair said that its inclusion in ETS - which took effect on 1 January - will cost it €15-20 million ($19.1-25.5 million) in 2012.

"Ryanair does not believe that European aviation should be included in the ETS scheme since it accounts for less than 2% of the EU's carbon dioxide emission," said Ryanair.

"This latest EU stealth tax will damage traffic, tourism, European competiveness and jobs at a time when no other economic block is including aviation in their ETS schemes."

German carrier Lufthansa said earlier this month that it would pass on ETS costs to its passengers, and US carriers American Airlines, US Airways, United Airlines and Delta Air Lines have all added surcharges on flights to Europe since the beginning of the year.