Why Are Flights So Expensive? EU Emissions Trading 2026

Until 2023, airlines received up to 82% of their CO2 certificates at no charge. A gift from the EU to ease the transition. Then the phase-out started: 25% cut in 2024, another 50% in 2025. And since January 1, 2026? Zero. Nothing free anymore.

Every gram of CO2 that a European airline emits within the EEA now needs a purchased certificate behind it. At 92 euros per ton as of January 2026, that adds up fast.

I think most people don't realize the scale of this.

Real numbers help here. KLM published its ETS costs: 25 million euros in 2019, 152 million in 2024. By 2030, they expect 325 million. Per year. Just one airline.

The industry group Airlines for Europe (A4E) estimates the total burden for its members at roughly 5 billion euros through 2030. That money has to come from somewhere.

And that somewhere is your wallet.

The Lufthansa Group was first to show it openly: an environmental cost surcharge of 1 to 5 euros on short-haul economy flights. Up to 72 euros in first class on long-haul routes. At least that's transparent. Other airlines quietly baked the costs into their base fares.

But the price effect goes beyond surcharges. Ryanair cut 1.8 million seats in Germany for summer 2025. Dortmund, Dresden, Leipzig: gone entirely. Hamburg: 60% less capacity. easyJet and Wizz Air also scaled back. We covered the details in our piece on cancelled Ryanair routes (Coming Soon).

Fewer budget carriers means less competition. Less competition means higher prices for everyone.

Germany charges roughly 35 euros in state-imposed fees per passenger, making it the most expensive departure country in Europe. Aviation tax, security fees, air traffic control costs. All of that stacks on top of the emissions trading burden airlines are already carrying.

Ryanair CEO Eddie Wilson put it bluntly: German citizens pay the highest airfares in all of Europe. Not because fuel costs more here. Because of government-imposed charges.

Then there's the SAF mandate. Since 2025, all departures from EU airports must blend in 2% sustainable aviation fuel. SAF costs two to five times more than regular kerosene. And the ERA reported after the February 2026 deadline that many fuel suppliers failed to submit the required SAF documentation on time. Airlines now risk penalties for delays they didn't cause.

Honestly? It's a mess.

Germany plans to lower its aviation tax starting July 2026. Sounds promising, right?

The savings amount to about 3 euros per passenger. BDL CEO Joachim Lang says the industry needs at least 15 euros in relief per ticket to stay competitive. Three euros barely registers. You can read more about the planned aviation tax reduction.

You can't change the regulations. But you can book smarter.

Booking 4 to 8 weeks before departure typically gets you the best prices on European routes. Tuesdays and Wednesdays tend to be cheapest. Price alerts on Skyscanner or Google Flights help you catch the right moment.

Here's one many travelers overlook: flying with carry-on only saves you money at most airlines immediately. No checked bag means lower fees and cheaper fare classes. Especially on Ryanair and easyJet, this makes a real difference.

And if you're wondering whether to wait for the 2026 summer flight schedule: probably don't. Prices tend to climb the closer you get to peak season. Worth investing in good headphones for the flight though. If flying is getting pricier, you might as well be comfortable.