Lufthansa Cargo has announced that, beginning January 1, 2025, it will incorporate the rising costs associated with sustainable aviation fuel (SAF) into the price index of its existing Airfreight Surcharge (ASC). This move comes as regulatory environmental requirements lead to mandatory SAF blending rates in various jurisdictions. For departures from European Union (EU) countries, a two percent blending rate will be enforced from 2025, with similar mandates being planned or already implemented in other regions. For instance, the Indian government is exploring a quota of one to five percent starting in 2027, while Singapore requires a one percent SAF inclusion for flights departing from Changi Airport beginning in 2026, aiming for three to five percent by 2030.
Lufthansa Cargo emphasises that it cannot shoulder the increasing environmental costs associated with these mandatory blending requirements alone. The airline recognises that a competitive SAF market cannot develop without targeted political support strategies, which are essential for increasing the supply and availability of SAF at reduced costs. Currently, biogenic SAF is limited in supply and costs three to five times more than traditional fossil fuels. Therefore, a concerted policy approach is crucial to meet the anticipated blending rates and beyond.
The ASC, in place since 2015, serves as a mechanism for covering additional costs beyond Lufthansa Cargo’s control, which have primarily included fluctuating fuel prices, currency exchange rates, and security expenses. The airline monitors these costs using a standardised index calculation system, adjusting the surcharge based on the indexed cost fluctuations. The ASC is then added to the net price of each shipment, though regulations in certain countries may limit the application of surcharges, leading to variable surcharge levels globally.
Lufthansa Cargo is committed to sustainability, aiming for a neutral CO₂ balance by 2050, with an interim goal of halving its net CO₂ emissions by 2030 compared to 2019 levels. This commitment includes leveraging a modern fleet, optimising flight operations, and utilising sustainable aviation fuels. Furthermore, Lufthansa Cargo continues to offer its “Sustainable Choice” service, allowing customers to transport shipments more sustainably through SAF and contributions to climate protection initiatives. This portion can be verified through emission reduction certificates, aligning with the airline’s broader climate objectives.
