Jet2 chief executive Steve Heapy has urged travel agents to speak to their local MP about the “unfair” taxes faced by the airline industry.
During the Jet2holidays annual conference, Heapy warned that rising aviation taxes will soon lead to increasing numbers of people being priced out of flying.
He said: “Flying will become something for the rich and privileged – that’s the policy that the government is pursuing.”
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Heapy added: “If you’re speaking to your local MP, I would urge you to ask them what their view is on the policy for aviation. What do they want to see happen?”
The Jet2 chief told delegates in Turkey that the aviation sector emits less carbon dioxide than sectors including cement-making, fast fashion and meat production, but airlines pay more in tax.
Heapy said: “The airline industry is being unfairly targeted. It’s given more focus than any other industry. We’re all aware of carbon tax and air passenger duty (APD). Is there a meat tax? A clothing tax? A bitcoin tax? No.”
Heapy said the tax burden has increased in a number of ways in recent years and he added that the trend looks set to continue.
Citing the UK emissions trading scheme (ETS), Heapy said the cost for a permit per tonne of carbon dioxide has risen “by a factor of 16 in five years”.
He said: “As an airline, we emit about 2.2m tonnes of carbon dioxide and we have to buy permits for that. Five years ago, the permit for one tonne was £5. The market price for carbon today is £78.”
Heapy also cautioned that the EU is thinking about introducing a “massive tax” on jet fuel, adding: “Imagine your tax rate went up to 70% – that’s going to happen with jet fuel.”
Among the other costs cited by Heapy were a change in emission rules applying to the Canary Islands and Madeira.
He said: “The Canary Islands and Madeira in the EU are known as outermost regions and get special treatment, so flights to those destinations were exempt from ETS. That’s being removed from January 1, which will put the price of a return flight up by about £25.”
On sustainable aviation fuel (SAF), Heapy said it looks unlikely that the aviation industry will be able to meet government targets.
He said the government wants 2% of fuel to be SAF by 2025, with the figure rising to 10% by 2030, but he added: “The harsh reality is that there will not be enough SAF in the UK.”
Attempts to build five SAF production plants in the UK by 2025 do not seem to be going to plan, Heapy said. He added that Jet2 has invested in the construction of a plant in the north-west of England.
Heapy also highlighted the cost of SAF, saying: “The stuff we’ll be required to use [Hefa] is about 12 times more expensive than jet fuel.”
Jet2 has been reducing its carbon footprint, said Heapy, as well as investing in carbon off-setting schemes including tree-planting and the building of hydroelectric plants and wind turbines.
The airline has ordered a total of 146 Airbus A321neo aircraft, said Heapy, costing around $18.1bn.
“These are the quietest and more fuel efficient in their class,” Heapy added.
He said Jet2 has cut the weight of flights by fitting winglets and split scimitar winglets, as well as fitting carbon wheels and brakes and introducing plastic carts instead of the traditional metal models.
“We try to take as much weight off the aircraft as possible,” said Heapy, adding: “The more weight you have on the aircraft, the more fuel you use and the more carbon you emit.”
Heapy said he would create a factsheet for travel agents to use when customers ask about Jet2’s sustainability practices.