Icelandair CEO: Long-term solution needed as EU flight exemption extended to 2030

Iceland's special exemption for international flights within the EU's Emissions Trading System (ETS) will be extended until 2030, a move welcomed by Icelandair as crucial for long-term business planning. The agreement, a joint declaration by the European Commission and Icelandic authorities, provides a much-needed layer of predictability for the airline.

Bogi Nils Bogason, CEO of Icelandair, stressed the importance of long-term foresight in the aviation industry. "In operations, we need to think and make decisions for the long term regarding aircraft purchases and more. That's why it's important to have long-term predictability and lasting solutions, not short-term special exemptions, because three years pass quickly in our industry," he stated.

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In operations, we need to think and make decisions for the long term regarding aircraft purchases and more. That's why it's important to have long-term predictability and lasting solutions, not short-term special exemptions, because three years pass quickly in our industry.

The exemption helps manage the significant environmental costs associated with aviation. Bogason noted that Icelandair's environmental costs were around 5 billion Icelandic krónur last year with the exemption in place; without it, these costs could have risen to approximately 6 billion krónur.

However, both Icelandair and other European airlines express reservations about the localized nature of the solution. They argue that aviation is inherently international and that localized measures might simply shift traffic to more economically favorable regions. "It is very important that work is done to find an international solution, not a localized system like the one being worked on now," Bogason concluded, advocating for a global approach to address international aviation emissions.

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It is very important that work is done to find an international solution, not a localized system like the one being worked on now.