Speaking at the Jet2 conference in the Algarve on Tuesday (15 November), Heapy said with taxation the only real tool in their armoury, politicians risked taxing ordinary people out of being able to fly.
Heapy’s comments came as part of a wide-ranging address on sustainability and climate issues, setting out Jet2holidays’ stall on the "biggest issue" currently facing the industry, touching on carbon taxation, sustainable aviation fuel and flight shaming.
"Climate change is here to stay," he warned attendees. "This will be here for generations – it’s the biggest risk you face."
Heapy said he believed aviation has so far come in for excessive scrutiny, given it currently contributes around 2.4% of global emissions – comparable, he claimed, with shipping (2.4%) and cement (3%). "I’ve not heard a lot of ‘cement shaming’," he joked, drawing parallels with “flygskam” (flight shaming). "We are an offender, but we are not the worst," Heapy added.
Heapy said there was "no way" the EU would be able to meet its commitment to reducing greenhouse gas emissions by 55% by 2030, or the UK government its commitment to 67% by the same date, warning that as these deadlines approach, politicians would likely become increasingly desperate.
"The only tool in their box is taxation," said Heapy. "We have the green levy on energy bills, we have APD [Air Passenger Duty] and carbon ETS [the EU Emissions Trading Scheme]."
Heapy revealed the cost of carbon permits had increased from around £5 to £10 a ton between 2011 and 2018 to around £90 a ton, peaking this June. "It’s all going into ticket prices, ticket prices are going up," said Heapy.
He warned sustainable aviation fuel (SAF) wasn’t a silver bullet either, with the UK currently committed to transitioning to a 5% SAF fuel mix for jets by 2025 and 10% by 2030 while having no operational SAF plants.
"It’s three to four times more expensive," said Heapy. "It may be that when we start buying it, the price will be high and that will go on the ticket price too."
Heapy said more environmental tax proceeds should be funnelled back into solving climate issues, reminding delegates APD was initially conceived as a "green" tax.
"If you are taxing aviation in the name of the environment, we would hope things are done in the name of the environment," he said. "They are taxing us and not spending it on the right things. This is very dangerous.
“It’s the biggest risk you face – politicians going back to the to the one tool in their box and taxes will keep going up and up and up. It will tax people out of the ability to fly. Flying will become something for the rich and privileged. It keeps me up at night.”
Heapy said he had been invited to join the Aviation Council and also the government’s Jet Zero Council. "Hopefully, we will be able to inform policy," he said. "This is a real danger to the industry. We want to make it fairer."
He added the industry’s two key asks were for all money raised through taxation in the name of the environment to be spent on green projects, and for airlines to be taxed only once per ton of carbon.