HIGH COSTS, LOW SUPPLY SLOW AIRLINE INDUSTRY’S SHIFT TO CLEANER JET FUEL — IATA
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By Aishat Momoh. O.
The global airline industry’s transition to cleaner aviation fuel is losing momentum due to high costs and limited production, the head of the International Air Transport Association (IATA) has warned.
IATA Director-General Willie Walsh raised the concern on Monday while speaking at the Changi Aviation Summit in Singapore, ahead of the Singapore Airshow.
“Unfortunately, we’re not making sufficient progress on sustainable aviation fuel,” Walsh said, describing the pace of adoption as inadequate despite SAF being central to the industry’s decarbonisation plans.
Sustainable aviation fuel, widely regarded as a key tool for reducing carbon emissions from air travel, accounted for just 1.9 million tonnes in global output in 2025—only 0.6 per cent of total jet fuel consumption. Walsh noted that this figure represents a downward revision from earlier projections.
He attributed the slow uptake partly to mandatory blending requirements in some regions, which he said have driven up prices and discouraged voluntary adoption by airlines.
“SAF prices are more than twice the cost of conventional jet fuel, and in markets with mandates, that differential can rise to as much as four times,” Walsh said.
Under European Union regulations, airlines are required to blend two per cent SAF into their fuel from 2026, increasing to six per cent by 2030 and 20 per cent by 2035, before rising sharply to 70 per cent by 2050.
In a move to encourage adoption, Singapore’s Civil Aviation Authority on Monday signed an agreement with nine companies, including Google, Temasek and Singapore Airlines, to participate in a voluntary trial for the centralised purchase of SAF.
The initiative is part of Singapore’s broader strategy to support greener aviation practices. From October 1, all flights departing Singapore will be required to include one per cent SAF in their fuel mix, with a levy introduced to fund the transition—a move expected to increase airfares.
Singapore has also announced plans to raise the SAF blend requirement to between three and five per cent by 2030, in line with targets set by the International Civil Aviation Organization (ICAO).
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