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A wave of anti-“greenwashing” litigation is seeking to hold major players in the aviation industry to account for sensational claims of being sustainable, low-carbon or contributing to net zero. While the industry has faced legal backlash in the past, the dramatic proliferation of these cases may spell disaster for major airlines.

It’s not hard to see why the aviation industry has provoked the ire of climate activists. Flying is responsible for a staggering 5% or so of human-induced global warming and its climate impact is still growing at a rate far greater than almost any other sector.

In this context, a profusion of “green flying” and “sustainability” advertising campaigns has turned the industry into an emblematic example of the debate between growth and sustainability.

Why greenwashing?

The rise in greenwashing litigation can in part be attributed to the relative ease with which cases can be brought. It’s simply a lot easier to attack an airline’s advertising compared to other activities that might be targeted by strategic climate litigation.

Consumers can use legal mechanisms such as commercial practice or consumer protection regulations, as happened in a recent greenwashing complaint to the European Commission filed by consumer groups in 19 countries against 17 airlines.

It’s an effective form of climate action due to the power exerted by advertising on public perception and social norms. The UN’s Intergovernmental Panel on Climate Change (IPCC) has underscored the importance of reducing demand for flying in the first place, something significantly hindered by adverts that downplay its environmental impact.

A report by Greenpeace and think tank the New Weather Institute claimed that in 2019 airline advertisements influenced 34 million tonnes of CO₂ equivalent emissions worldwide.

This litigation is also buoyed by the demonstrable falsehoods that riddle the sustainability strategies of these companies. The pillars upon which their net-zero strategies rest vary from the broadly ineffective to the dangerously fraudulent and facilitate growth in a sector in dire need of reduction.

Airlines all rely on some form of carbon offsetting – planting trees, for instance, to “offset” the carbon emitted by the planes – or sustainable aviation fuel or carbon capture and storage, in order to “mitigate” their climate impacts.

Common litigation strategies

Thus far, there have been six climate change-related cases brought against major airlines (four in Europe, one in the US and one in Brazil). These cases are buttressed by numerous legal complaints taken through the European Commission or the UK and US advertising standards boards which have already successfully ordered Ryanair, Lufthansa and Etihad to pull ad campaigns.

In each of these three cases, authorities found that terminology like “protecting the future”, “sustainable aviation” or “low-emissions airline” amounted to wilful misleading of consumers and breached advertising regulations.

A recent case taken by Dutch campaigners against airline giant KLM is the most daring example yet. Climate action group FossielVrij(Fossil-free) argues that KLM’s “Fly Responsibly” campaign constitutes misleading advertising under EU consumer law.

The group asserts that flying responsibly is impossible at present, and that KLM seeks company growth and increased flight sales, when it should be reducing emissions by reducing the number of flights. KLM said its “communications comply with the applicable legislation and regulations”, but has dropped the Fly Responsibly campaign.

Interestingly, this case builds upon a ruling of the Dutch Advertisement Code Commission and indicates the “snowballing” trend inherent in anti-greenwashing litigation, wherein cases rely upon precedent set by previous authorities. With this borne in mind, the recent 19-country complaint by the European Consumer Organisation could provide the strongest foundation to date for future litigation.

Delta Airlines is also facing a class action suit in the US, brought by a California resident who alleges that by marketing itself as a “carbon-neutral” Delta has grossly misrepresented its environmental impact. This points to a growing understanding of the ineffectiveness of carbon offsetting, a net-zero tactic adopted by almost every major airline.

A Delta spokesperson said the case is “without legal merit” as the airline has “transitioned its focus away from carbon offsets” towards decarbonising its own activities. European companies should follow this case closely as American-style “class action” litigation will soon be made possible in the EU.

Does this litigation have teeth?

These cases might result in companies simply pulling their green campaign while maintaining their existing corporate framework and growth models. More promisingly, recent research suggests that any climate-related case taken against a major emitting company will affect the firm’s value (on average by 0.057% following the filing of a case, and by 1.5% following an unfavourable decision).

In reality, these early cases are merely scratching the surface of what’s possible. Once these cases enter the public conversation, a growing understanding of consumer protection is bound to follow.

In many jurisdictions, such as my home country of Ireland, significant damages can be awarded against companies for misleading advertisement. The UK’s Competition and Markets Authority, which is currently investigating claims of greenwashing in other sectors, will soon be able to fine companies 10% of their global turnover for non-compliance.

While anti-greenwashing litigation might not halt the growth of this industry altogether, it is no doubt an invaluable tool. At its most effective, it can stop blatant profiteering from the climate crisis and force the aviation sector to confront the chimera that is green growth.

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Japan Airlines has unveiled the cabin interiors of its soon-to-be-delivered A350-1000s, the carrier’s future international flagship aircraft.

Expected to commence operations before the year is out, the new plane is expected to launch on Japan Airlines’ Tokyo (Haneda)-New York route.

According to the carrier, the new aircraft will offer a higher level of comfort, with its cabins designed to “immerse customers in the elegance of Japanese aesthetics and envelop them in tranquility, providing a serene ambience that encapsulates the beauty of Japan”.

Sounds promising, and a little like the overall experience one can expect on the ground in Japan too.

The new cabin will also be consistent with JAL’s domestic fleet (A350-900 and 787-8 aircraft).

With each class reimagined, new seats will feature across all cabins – First, Business, Premium Economy and Economy – to provide Japan Airlines’ “most relaxing and comfortable experience to date”.

To start with, First Class and Business Class promise fully private suites, with Premium Economy also providing more privacy and comfort. Economy Class, meanwhile, will feature “spacious seating and ample legroom”.

JAL will also gradually introduce new onboard dining, with tableware and cutlery promoting non-petroleum-derived plastics to reduce their environmental impact.

Elsewhere, Panasonic Avionics Corporation’s (USA) latest inflight entertainment system and inflight wi-fi service will also debut on board the new aircraft, with all classes boasting 4K monitors with Bluetooth connectivity and a full integration of the JAL Mobile App.

First Class

At the pointy end of the Japan Airlines plane, six First-Class suites will create an exclusive cabin environment, with JAL introducing individual doors for the first time and eliminating overhead bins for a more open atmosphere.

Seats will measure an enormous 123cm wide, with a bed length of around 203cm.

Along with wardrobe and storage space, First Class will also feature the world’s first headphone-free stereo with built-in headrest speakers available even in bed mode for the massive 43-inch screen.

Business Class

Unlike First Class, Business Class capacity will grow in the new flagship aircraft (to 54 seats), but brand new doors and electric partitions will offer passengers more privacy than ever before.

The lie-flat bed will measure around 198cm and also features a reclining function that allows for easy viewing of the 24-inch screen even whilst lying down. Business passengers will also fly headphone-free. 

Premium Economy Class

Along with “large” partitions for more privacy, the Japan Airlines flagship will be the first to introduce electronically-operated reclining functionality in Premium Economy.

Other features include a 107cm seat pitch, 48cm seat width and 16-inch monitors, which are around 1.3 times larger than the current offering.

Economy Class

With a seat pitch of 84-86cm, seat width of 46cm and 13-inch monitor size, JAL promises a higher level of comfort for Economy passengers.

The airline has won the “Best Economy Class Airline Seat” by SKYTRAX six straight times.

Inflight dining 

Along with enhanced vegan and vegetarian meals, long-haul Business Class passengers will be able to design their own dining schedule (available from spring 2024).

Meanwhile, Premium Economy Class and Economy Class flyers will have an optional menu (for a fee) that boosts their culinary choices, as well as access to a renewed vegan and vegetarian menu.

With its new dining concept, Japan Airlines hopes to deliver a “healthy inflight meal that satisfies both the body and mind”.

Amenities

Business Class flyers will be able to rent thin, lightweight, 100 per cent cotton “relaxing wear”, while First Class flyers will have similar attire made from 100 per cent organic cotton.

Paper-based amenity kits featuring the artwork of specially contracted artists will also be available to premium passengers.

To mark the launch of the A350-1000, JAL will offer for a limited time an exclusive “MISOKA” toothbrush, which can be used with just water. This will be available for First and Business passengers until June and February 2024 respectively.

In Premium Economy and Economy, JAL will roll out new eco-friendly tableware for inflight meals featuring materials such as paper or 100 per cent recycled plastic.

Details of the new A350 experience can be found here.

In July, Japan Airlines (JAL) and general trading company Sumitomo joined forces to allow visitors to Japan to hire a travel wardrobe from ¥4,000 (about AU$41) per day and fly with less baggage.

American Airlines Group (NASDAQ:AAL – Free Report) had its price target reduced by Jefferies Financial Group from $16.00 to $15.00 in a research note published on Friday, MarketBeat Ratings reports. Jefferies Financial Group currently has a hold rating on the airline’s stock.

AAL has been the subject of a number of other reports. Berenberg Bank cut their price target on American Airlines Group from $26.00 to $23.00 and set an outperform rating for the company in a research note on Tuesday, September 26th. Barclays lifted their price objective on American Airlines Group from $15.00 to $18.00 and gave the company an underweight rating in a research report on Thursday, July 13th. TheStreet raised American Airlines Group from a d+ rating to a c rating in a research report on Thursday, July 20th. Redburn Partners cut American Airlines Group from a buy rating to a neutral rating in a research report on Monday, August 7th. Finally, BNP Paribas raised American Airlines Group from a neutral rating to an outperform rating and set a $20.00 price objective on the stock in a research report on Wednesday, September 6th. Two research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat.com, American Airlines Group has a consensus rating of Hold and an average target price of $18.57.

Read Our Latest Analysis on American Airlines Group

American Airlines Group Stock Down 0.5 %

American Airlines Group stock opened at $12.75 on Friday. The business has a 50-day simple moving average of $14.66 and a two-hundred day simple moving average of $15.02. The company has a market cap of $8.33 billion, a P/E ratio of 3.42, a P/E/G ratio of 0.08 and a beta of 1.57. American Airlines Group has a 52-week low of $11.65 and a 52-week high of $19.08.

American Airlines Group (NASDAQ:AAL – Get Free Report) last released its quarterly earnings results on Thursday, July 20th. The airline reported $1.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.59 by $0.33. The business had revenue of $14.06 billion during the quarter, compared to the consensus estimate of $13.74 billion. American Airlines Group had a negative return on equity of 45.44% and a net margin of 4.98%. The business’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.76 EPS. Research analysts anticipate that American Airlines Group will post 2.88 EPS for the current fiscal year.

Institutional Trading of American Airlines Group

Large investors have recently added to or reduced their stakes in the company. ING Groep NV bought a new stake in American Airlines Group in the 1st quarter worth approximately $1,631,000. Janney Montgomery Scott LLC increased its position in shares of American Airlines Group by 190.7% during the 1st quarter. Janney Montgomery Scott LLC now owns 79,608 shares of the airline’s stock valued at $1,174,000 after purchasing an additional 52,226 shares during the last quarter. Bartlett & Co. LLC bought a new position in shares of American Airlines Group during the 1st quarter valued at approximately $27,000. Pacer Advisors Inc. increased its position in shares of American Airlines Group by 3,527.8% during the 1st quarter. Pacer Advisors Inc. now owns 650,182 shares of the airline’s stock valued at $9,590,000 after purchasing an additional 632,260 shares during the last quarter. Finally, CWM LLC increased its position in shares of American Airlines Group by 75.2% during the 1st quarter. CWM LLC now owns 22,453 shares of the airline’s stock valued at $331,000 after purchasing an additional 9,641 shares during the last quarter. Institutional investors own 58.50% of the company’s stock.

American Airlines Group Company Profile

(Get Free Report)

American Airlines Group Inc, through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.

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