Singapore Airlines flags climate-related compliance costs as emissions rise

Singapore Airlines has warned it faces cost challenges from climate-related compliance as emissions rise on growing passenger and freight volumes.

The group anticipates that the category, which includes the use of credits under the Carbon Offsetting and Reduction Scheme for International Aviation, could have a "high risk" impact of more than S$200 million ($156 million) by 2030, according to a sustainability report published Wednesday.

Scope 1 emissions - those tied directly to flight operations, and the carrier's largest segment - rose 14% in the 12 months through March 31 on higher fuel consumption from passenger growth and airspace restrictions, which lengthened some journeys, the report said. Singapore Airlines is targeting net zero emissions from its operations by 2050.

"The airline industry's key near-term decarbonisation lever is replacing older generation aircraft with modern fuel-efficient models, which emit significantly less carbon," chief executive officer Goh Choon Phong said in the report.