Reuters has reported Lufthansa has become the first airline to address the expenses incurred as a result of the EU Emissions Trading Scheme (ETS). Since Lufthansa has among the highest number of Intra-European and International flights of any carriers that serve the EU, it will be affected to a higher degree than other airlines. Non EU-based carriers will be subject to the provisions of the ETS as well.

Highlights from the article include:

* Says to add costs of the ETS to fuel surcharge

* Says 2012 costs from the ETS expected at 130 mln euros

* Says will have to buy 35 percent of needed permits in 2012

Last month Lufthansa had already increased ticket costs due to higher fuel expenses and has indicated that in the short term, it will not be adding any additional surcharges to it’s fares. So at least for now Lufthansa has planned accordingly and seems to being dealing with ETS as well as it can given the environment.

In a previous entry on my blog, I talked about the impact of the ETS on US based carriers.

EDIT: Good point by Reader AnatO1 (from comments): Interesting that LH will add the cost to the fuel surcharge. This means that if USA based (mainly award) tickets continue not to attract YQ, the ETS will not be passed to new tickets either.