Price-Induced Demand Changes through “Fit for 55” Instruments in Aviation

The European Union’s “Fit for 55” package of measures aims to reduce CO₂ emissions by 55% by the year 2030 compared to 1990 emissions levels. Various instruments are being implemented and planned for aviation, including changes to fuels, as well as taxes and fees. Depending on the extent to which airlines pass on the additional costs to passengers, there may be changes in air travel ticket prices. This study explores the potential impacts of ticket price adjustments on the level and distribution of demand.