Court Ruling Questions Lufthansa Offshoot Austrian Airlines' Dubious Environmental Claims: Report

In a recent court ruling, Austrian Airlines AG, a subsidiary of Deutsche Lufthansa AG DLAKY, faced backlash for making inaccurate environmental claims, specifically misleading eco-conscious passengers into believing their flights were wholly sustainable.

The controversy was sparked earlier this year when an Austrian consumer-protection body filed a lawsuit against Austrian Airlines. The airline's advertising suggested that its flights to an art exhibition in Venice, Italy, would be operated using 100% sustainable aviation fuel.

Contrarily, a mere 5% of the fuel used for these flights came from renewable sources, as revealed by the details released by Austrian Airlines on its X account, reported Bloomberg.

Following the ruling, Austrian Airlines was mandated to display a copy of the court's decision on its website and social media platforms, precisely where the contentious advertisement was previously posted. Furthermore, the airline is obligated to cover the legal fees incurred by the consumer-protection association.

In response, Austrian Airlines extended its acknowledgment of the judgment, expressing in an email that, "It follows from the ruling that Austrian Airlines should have provided clearer information."

Price Action: DLAKY shares were down 5.35% at $8.14 at the time of publication Monday.

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