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By Sarah Young
LONDON, Sept 28 (Reuters) - The boss of British airline Jet2
expects ticket prices to rise because of environmental
demands but believes travel demand will stay robust as consumers
prioritise holidays and find alternative ways to live a greener
life.
After COVID-19 brought many airlines to the brink, the
industry has refocused on an even bigger risk: climate change
and an expected barrage of environmental taxes, legislation and
new related costs over the next decade.
"I think a lot of things in life are going to become more
expensive and we've got to accept that that will be the case,"
Jet2 Chief Executive Steve Heapy said.
Demand will return to pre-COVID levels despite rising
environmental consciousness and "flight shaming," he said,
referring to social pressure to avoid flying over emissions
concerns.
"Maybe people will give up red meat twice a week to have an
annual holiday. It's all going to be about choices," he said.
Jet2, which also sells package holidays, has committed to
hitting net zero carbon emissions by 2050, as have a number of
other airlines.
It plans to offset every tonne of carbon not covered by its
contribution to existing schemes from 2022, has signed a deal to
buy dozens of new Airbus A321neo jets, which are more fuel
efficient than current plans, and will start using sustainable
aviation fuel in its jets from 2026.
But low-emission bio-based fuels are in short supply and can
cost at least three times more than kerosene. That, combined
with the threat of new flying taxes, could spell trouble for
airlines.
Heapy's main concern was that governments could impose
consumption taxes on airlines, potentially hurting demand and
making air travel accessible largely to the wealthy.
"We've got to be seen as an industry to be taking the right
steps to decarbonize as quickly as possible," he said, calling
on Britain to raise its investment in sustainable aviation
fuels.
In the shorter term, Heapy said Jet2's bookings for this
winter and summer 2022 had shot up since Britain relaxed travel
rules earlier this month.
"We could be in for a very good winter but it all depends on
what the government does," he said, adding that holiday
companies needed stability and not the last-minute rule changes
that have characterised Britain's travel rules so far in 2021.
Asked about a recent bid for British competitor easyJet
, believed to have been from low-cost upstart Wizz Air
, Heapy said: "I think that there probably will be
consolidation. We have no plans to be involved in that."
(Reporting by Sarah Young; Editing by Bernadette Baum)
