European airlines have warned of a damaging trade war with the US, Russia and China if Brussels pushes ahead with plans to include carriers in the emissions trading scheme next year in a move that will put fares up by €40 and cost the industry €1.1bn (£980m). The warning comes as US airlines prepare to launch a legal challenge against the ETS in Luxembourg next month, adding to unease from the Russian and Chinese governments. “If this is not sorted out in the next six months we run the risk of a trade conflict between the EU and third countries,” said Ulrich Schulte-Strathaus, secretary general of the AEA. More here