The regulatory focus in European aviation this week continues to centre on cost of carbon compliance for EU operators, technical rule changes for training, and the intersection of capacity constraints with environmental and fuels policy. The backdrop is a sector that is now fully exposed to ETS auctioning and preparing for ReFuelEU’s 2025 obligations, with airlines and lessors revisiting commercial allocation of these risks in contracts.
Reducing emissions from aviation – EU Climate Action
AIRE Aviation Policy Program update 2026 (PDF)
Commission Implementing Regulation (EU) 2026/781 amends Regulations (EU) No 1178/2011 and 965/2012 to update requirements for flight simulation training devices (FSTDs) and their use in pilot training, testing, and checking, tightening qualification standards and clarifying what training elements may be credited in simulators
For European AOCs, the new FSTD provisions in Implementing Regulation 2026/781 require a re‑assessment of approved training organisation syllabi, simulator qualification bases, and compliance manuals, particularly where existing courses rely heavily on older devices or legacy approvals for checking and recurrent training. Operators will need to coordinate early with competent authorities and simulator providers to avoid gaps in training capacity and to ensure that revised simulator approvals are in place before upcoming seasonal peaks.
Commission Implementing Regulation (EU) 2026/781 – EASA notice
The phase‑out of free EU ETS allowances for aviation emissions by 2026 is now effectively complete, with airlines bearing the full auctioning cost as of this year
Industry group AIRE is urging the Commission to fine‑tune interaction between ETS, CORSIA and ReFuelEU, in particular on how SAF purchases are recognised for compliance.
The ReFuelEU Aviation Regulation started to apply from 1 January 2025, progressively increasing minimum SAF blend mandates on flights departing EU airports and driving renegotiation of long‑term offtake and fuel supply contracts ahead of the first compliance year.
From a cost and contracting perspective, the end of free ETS allowances and the imminent application of ReFuelEU mean that carbon and SAF‑related price elements now need to be expressly allocated in ticket conditions, ACMI/charter contracts, and long‑term fuel supply agreements, rather than being treated as residual or pass‑through. Finance and leasing structures for EU‑based fleets will increasingly need to model explicit ETS and SAF compliance cost curves, as well as potential disruption premiums where physical fuel shortages (as flagged by IATA) interact with regulatory obligations.
The complex overlap between ETS, CORSIA and ReFuelEU also raises legal and compliance‑systems questions around double counting, registry reconciliations, and evidentiary standards for SAF claims; airlines, verifiers and insurers should expect more intrusive audits and potential disputes over whether particular SAF purchases are eligible in both EU and ICAO schemes.
Reducing emissions from aviation – EU Climate Action
AIRE Aviation Policy Program update 2026 (PDF)
New rules on passenger rights could kill regional routes
European Parliament and Council trilogues on revised passenger rights rules create concerns amongst regional and PSO operators that more onerous compensation triggers could make thin regional routes uneconomical, with knock‑on implications for connectivity obligations and state aid structures.
https://euperspectives.eu/2026/02/passenger-rights-kill-regional-flights/
IATA has warned that Europe could see flight cancellations from late May 2026 because of jet fuel shortages
This highlights the operational risk that physical supply constraints may collide with new SAF and ETS compliance obligations for European carriers and airports. Commission or Member‑State emergency measures on jet fuel security of supply before the 2026 summer season could affect slot utilisation rules, capacity planning, or exceptional derogations from normal operational requirements.
Europe faces summer flight cancellations from jet fuel shortage – Reuters
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