A post by @FirstSquawk on X.

IAG, the parent company of British Airways, warned that rising environmental compliance costs are threatening the competitiveness of Europe’s aviation sector. The group pointed to the mounting expense of green mandates—including sustainable aviation fuel (SAF) requirements and EU emissions trading obligations—as a financial burden that could undermine carriers’ ability to invest and compete globally. The warning matters because European airlines already face thinner margins than many international rivals, and higher decarbonization costs risk widening that gap or being passed to passengers through fares. Investors should watch for policy responses from Brussels on SAF mandates and carbon pricing, as well as how IAG and peers like Lufthansa and Air France-KLM factor these costs into guidance and capacity plans.