This chapter focuses on the environmental response of carbon fibre-reinforced epoxy composites, where the matrix has been modified with carbon nanotubes. These newly developed hybrid aerospace systems have been recently introduced as alternatives to conventional high performance polymer composites due to their improved mechanical properties, toughness and damage sensing abilities as discussed in detail in previous chapters. First an attempt is made to outline the conditions that lead to environmental degradation specifically in aerospace environments. Next to that the response of typical aerospace composites to these environments is discussed. Following, the benefits and challenges in using hybrid aerospace composites in in-service conditions is presented. The degradation of hybrid composites due to exposure on hydro/hygrothermal loadings and galvanic corrosion is presented based on preliminary results. In this section, the focus is on epoxy based composites reinforced with carbon fibres. Matrix modification of these systems is provided by the addition of carbon nanotubes.