Airlines to EU: Shove Your Cap and Trade

The European Union plans to reduce carbon-dioxide emissions by the end of the decade to levels 21% below those prevailing in 2005. This involves a ‘cap-and-trade’ strategy that has airlines up in arms.

Calling the strategy “misguided”, airlines claim that the industry has already taken steps such as investments in technology, more efficient operations and infrastructure, and “positive economic measures” to reduce pollution. The cap-and-trade Emissions Trading System seeks to control carbon dioxide emissions which are thought to be the main cause for global warming.

Keep your eye on how this will affect bets on airline stocks: Alaska Air Group (NYSE:ALK), United Continental Holdings (NYSE:UAL), Delta (NYSE:DAL), AMR Corp. (NYSE:AMR), US Airways (NYSE:LCC), Hawaiian Holdings (NASDAQ:HA).

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