Croatia Airlines has criticised elements of the European Union's green transition policies, warning that environmental regulations are imposing significant additional costs on the airline while limiting its ability to respond to ongoing market disruptions. The carrier argues that current decarbonisation measures are creating a growing disconnect between regulatory objectives and the economic realities facing airlines. “In such circumstances, a pronounced mismatch arises between the economic interests of airline operators and regulatory decarbonisation goals”, Croatia Airlines said.
The carrier noted that the ongoing conflict in the Middle East has driven up fuel prices and increased operational costs across the industry. However, it argued that some EU environmental measures are exacerbating these pressures. Croatia Airlines said that one of the most effective ways of mitigating higher fuel costs would be through fuel tankering, whereby aircraft take on additional fuel at airports where prices are lower. However, the practice is restricted under EU Regulation 2023/2405 because of its impact on emissions. “As a consequence, operators are forced to purchase fuel at higher prices, further reducing profitability and operational flexibility”, the airline stated.
Croatia Airlines has been particularly critical of the mandatory use of Sustainable Aviation Fuel (SAF), which it described as a growing financial burden. It said SAF requirements increase fuel costs at EU airports, which form the backbone of its network, while fuel prices continue to rise due to limited supply and an underdeveloped production market. The company also highlighted the impact of the EU Emissions Trading System (ETS), under which airlines no longer receive free emissions allowances from the beginning of 2026 and are now fully exposed to carbon market prices. It noted that operators must also comply with a mandatory minimum 2% SAF blend at EU airports, adding further costs at a time when SAF availability remains limited. “Financial incentives and compensation mechanisms remain significantly below the actual costs of SAF implementation, further undermining the economic balance of airline operations”, Croatia Airlines said.
The carrier warned that airlines have limited ability to pass higher costs on to passengers because many tickets are sold months in advance. According to the company, a large proportion of its summer season tickets had been sold before the latest rise in fuel prices and related cost pressures emerged. Despite its criticism of the current regulatory framework, Croatia Airlines reiterated that sustainability remains a key component of its long-term strategy. The airline said its ongoing fleet renewal programme, centred around the Airbus A220, will significantly reduce fuel consumption and carbon emissions while improving overall operational efficiency.
I will never understand why the is EU so happy to selfdestruct in the name of green ideology.... You can't sacrifice competitiveness, especially when the continent accounts for only 7% of total emissions
ReplyDeleteThe green lobby is out of control, that's why I never vote for "Green" parties even though I agree with most of their policies.
Delete@9.34 lmao yes we so much believe you that you agree with them
DeleteWhen did we, as people, ever approve these ‘green transition policies’ and ‘decarbonisation measures’? I don’t remember ever voting for it in a referendum and considering how widespread and total it is, I’m sure we had one.
DeleteLots of climate change deniers here i see.
DeleteLots of “let’s just find a way to tax people and greenwash it”, just EP trying to make EU even more less competitive
DeleteNo, instead we should just make sure that the Earth burns to a crisp even faster and more thoroughly so that in the last 20 years of it we remain "competitive" with each other. EU is the last major player to stick to some hope of action against climate change. If they also fold so that we are all "competitive", what exactly do you expect will happen with the climate over the next 50 years? The laws of physics will change to accommodate GDP growth?
DeleteThis is absolutely crazy. Had no idea they didn't allow this
ReplyDelete"Croatia Airlines said that one of the most effective ways of mitigating higher fuel costs would be through fuel tankering, whereby aircraft take on additional fuel at airports where prices are lower. However, the practice is restricted under EU Regulation 2023/2405 because of its impact on emissions."
Airlines are forced to buy fuel at more expensive airports even when it makes no economic sense.
DeleteWas not aware of this either. So bizarre.
DeleteNo one asks anything anymore, has anyone noticed? Nor the companies that are servicing us and that we’re paying for. It’s just obey and slave away.
DeleteFor once OU has a point.
ReplyDelete+1
DeleteThe airline has a point, but climate change isn't going to wait until SAF becomes cheap. If everyone delays action because it costs money, nothing will ever change. The transition was always going to be expensive.
Delete^ The EU is moving faster than the market can supply SAF. The result is higher ticket prices and weaker European carriers compared to competitors outside the EU.
Delete@9.17
DeleteThe real issue is that European airlines are competing against carriers from the Gulf, Turkey and Asia that don't face the same regulatory obligations. That creates an uneven playing field.
The ReFuelEU hits also extra-EU carriers (gulf carriers were the obvious target here) who in theory at least should not be coming into EU anymore with full tanks and avoiding uplifting fuel or taking minimum uplifts for their return journeys.
DeleteThe EU wants airlines to decarbonise but SAF is still scarce and extremely expensive. Airlines are being asked to pay the bill before the infrastructure is ready.
ReplyDeleteThis is what happens when policymakers make decisions from offices in Brussels without understanding how airlines actually operate. The theory sounds good, but the reality is higher costs and weaker airlines.
DeleteOr, if you leave the decision to become more environmentaly friendly with the private companies (most of whom are making record profits btw) then nothing would change as the companies would always go with the cheaper option.
DeleteInteresting that Croatia Airlines is complaining about costs while receiving state support for years.
ReplyDeleteCroatia Airlines is investing in new A220s, which are much more fuel efficient. They are actually doing something to reduce emissions rather than just complaining.
DeletePassengers will end up paying for all of this. Between ETS, SAF mandates and airport charges, air travel in Europe is becoming increasingly expensive.
ReplyDeleteIf Europe keeps increasing costs, passengers will simply connect through Istanbul, Doha or Dubai instead of European hubs. Emissions won't disappear, they'll just be shifted elsewhere.
DeleteSo when passengers pay for record profits that is fine but when the same passenger pays for cleaner environment, that is not fine.
DeleteI'm sorry but who else should "pay for this"? Whatever "this" is? People in Europe think it is perfectly normal to go hop to Alicante for a weekend or for some skiing to Switzerland. This incurs real environmental costs. Who exactly should "pay for this" other than the passengers, that is, people who choose to add to carbon emissions?
DeleteWhile the US, China and Gulf states focus on competitiveness, Brussels keeps adding taxes, mandates and regulations that make European airlines less competitive every year.
ReplyDeleteEuropean airlines are effectively being punished for operating in Europe.
DeleteThe environmental lobby will disagree, but SAF at 2% is already increasing costs noticeably. Imagine what happens when the mandate rises to 6%, 20% and beyond. The industry still hasn't answered how that will be financed.
ReplyDeletemany European airlines think this. Especially smaller ones that cannot absorb additional costs as easily as Lufthansa or Ryanair.
ReplyDeleteAirlines have known about these regulations for years. The phase-out of free ETS allowances didn't happen overnight.
ReplyDeleteIf Brussels wanted to reduce emissions, it should have first ensured sufficient SAF production capacity. Instead it introduced mandates and hoped the market would somehow catch up.
DeleteOU showing some teeth? Unexpected
ReplyDeleteOnly so they can explain why they have another record quarterly loss in Q2. Mark my words.
DeleteExactly, while some of their comments are sensible, this is just another scapegoat for their management.
DeleteGreens are destroying EU's economy.
ReplyDeleteGlobal warming -> climate change -> ?
Give it a rest.
DeleteMaybe the recent Croatia Airlines grass excursion had to do something with 'going green'? 😏
ReplyDelete9A-CAR and 9A-CAS are coming soon, I can't see them making any profit with such rules and such high fuel prices
ReplyDeleteI hear that one of them will be the worlds first Star Alliance livery A220
DeleteGlasali ste - gledajte! Niste glasali? Gledajte!
ReplyDeleteIt is everyone else fault for bad results except their… they could use this for justifing the new planes in fleet that underutilised and flying half empty on some routes.
ReplyDelete