Europe Moves to Cap Airline Emissions:

The New York Times reports that European officials are moving ahead with plans to impose caps on greenhouse gas emissions from air travel. Airlnes have been exempt from Europe's carbon dioxide cap-and-trade progrma, but that exemption could end in 2011. If this plan goes through, the costs are likely to be reflected in higher airline ticket prices, at least in Europe.

The international air transport group said that Europe’s proposal could still cost airlines globally up to 2.9 billion euros ($3.8 billion) a year to buy allowances starting in 2012, when the rules are expected to cover all flights in and out of the union.

But European officials said that airlines should be able to pass much of the extra costs on to passengers, who would face increases in ticket prices of $2 to $12 for a trip within the European Union over the next decade. Officials said a return flight to New York might cost an additional $10 to more than $50, depending on how much individual airlines would have to pay for extra carbon allowances.