Beginning 1 January 2025, Air Asia will impose a mandatory carbon fee on all passengers, marking a significant step towards enhanced transparency and accountability in the aviation sector as Malaysia intensifies efforts to reduce carbon emissions, announced Transport Minister Anthony Loke.
In a written response to Jerantut MP Khairil Nizam Khirudin’s parliamentary inquiry regarding amendments to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) and updates on carbon fee collections, Loke outlined the strengthened consumer protections now in place. The Malaysian Aviation Consumer Protection Code (Amendment) 2024, gazetted on 30 August and effective as of 1 September 2024, introduces several key changes, including the imposition of carbon levies.
“The amendments enhance protections for consumers, ensuring that airlines are held accountable for all-inclusive pricing,” Loke stated, highlighting that airlines must now advertise ticket prices inclusive of carbon fees or charges and disclose final ticket prices, inclusive of all applicable fees, before purchase.
The updated regulations also mandate that airlines refund fuel surcharges, taxes, and government-imposed charges, including carbon fees, when applicable. To further promote transparency, the Malaysian Aviation Commission (Mavcom) will require airlines to report on carbon fee collection and usage.
Currently, Malaysia Airlines operates a voluntary carbon fee programme, launched in June 2023. However, as Loke confirmed, Air Asia will be the first to make the carbon fee compulsory for passengers starting in 2025. No other airlines have confirmed similar plans for mandatory carbon fees at this time.