Iata says SAF increased airlines’ total fuel bill by $1.6bn last year

Iata estimated the average cost of sustainable aviation fuel (SAF) to be more than three times the price of jet fuel last year, adding $1.6 billion to airlines’ fuel bill.

The association calculates the average cost of SAF worldwide this year will be even higher at 4.2 times the price of jet fuel, and it argues this “is largely the result” of SAF ‘compliance fees’ levied by fuel suppliers in Europe to cover their potential costs of compliance with EU and UK SAF mandates.

These require a minimum average 2% of fuel on departing flights comprise SAF over the course of this year, subsequently rising each year to at least 6% SAF in the EU and 10% in the UK by 2030. 

Iata forecast SAF production would grow to two million tonnes this year, double the amount produced last year, but will still account for only 0.7% of airline fuel. It noted the need for “an exponential expansion” of production if the industry is to meet its target of net zero carbon emissions by 2050.

More: Airlines will fail to meet UK SAF target, says government advisory committee

Iata criticises price impacts of UK and EU SAF mandates