AirAsia to collect mandatory carbon fee starting 2025

Malaysia-based carrier AirAsia will begin imposing a mandatory carbon fee on all passengers starting January 1, 2025, according to the country’s Transport Minister Anthony Loke.

The official made the statement in a written reply to a parliamentarian who had inquired about the recent amendments to the Malaysian Aviation Consumer Protection Code 2016 and the current status of carbon fee collections introduced earlier this year.

He said this will mark a significant step in ensuring greater accountability and transparency in the aviation industry as Malaysia takes measures to combat carbon emissions.

The Malaysian Aviation Consumer Protection Code (Amendment) 2024 was gazetted on August 30 this year and came into effect on September 1. The amendments include several key provisions aimed at increasing transparency and accountability for airlines.

Loke highlighted that airlines are now required to publish all-inclusive ticket prices when advertising, which must incorporate any carbon fees or charges imposed on passengers. They must disclose the final ticket price, inclusive of all fees and charges, before a customer completes the purchase.

Additionally, the amendments stipulate that airlines are obliged to refund fuel surcharges, taxes, fees, and government-imposed charges, including carbon fees, when applicable.

To ensure transparency, the minister said the Malaysian Aviation Commission (MAVCOM) will require airlines to submit reports on carbon fee collection and usage.

At present, Malaysia Airlines has been implementing a voluntary carbon fee programme since June 2023. However, AirAsia will make the carbon fee mandatory for all passengers starting in January 2025.