The Sustainable Aviation Fuel (SAF) mandate came into effect on New Year’s Day in the UK. As part of the directive, airlines must ensure that SAF makes up 2% of their overall fuel mix from next year. As a result of the SAF mandate, could passengers expect ticket fares to rise?
Airlines on SAF mandate
Sustainable Aviation Fuel (SAF) is a term used to describe renewable aviation fuel. Made from non-petroleum feedstocks, some first-generation SAF fuels are produced using cooking oil and household waste.
Under the new SAF mandate that came into effect a week ago, airlines will combine traditional fuel with biofuel alternatives.
The owner of British Airways, International Airlines Group, has confirmed that there will be a rise in ticket fares as a result of the legislation. Virgin Atlantic has also announced that it will soon charge an environmental levy on tickets to compensate for the cost of Sustainable Aviation Fuel to airlines, while Lufthansa is keeping sustainable flying optional for now.
SAF industry in the UK
Parliamentary Under-Secretary of State for Transport, Mike Kane, announced on 1st January 2025 that:
“flights departing the UK will use greener fuels from today”.
Sustainable Aviation Fuel is crucial to decarbonising the aviation sector, however, there is currently only one SAF production plant in the UK. Due to scarcity in the supply of SAF, some predict that one-way flight fares could rise by nearly £40.00 per person. The government, however, argues that these predictions are modelled on worst-case scenarios and that the average rise in the cost of airfares will be just £4.00 and £10.00 by 2030 and 2040 respectively, as a result of the SAF mandate.
Welcoming the legislation, Airlines UK Chief Executive Tim Alderslade said:
“With thousands of jobs supporting the UK SAF industry and flying becoming [more] popular than ever, the mandate will help deliver our Plan for Change, helping to grow the economy and giving people the freedom to travel in a more sustainable way.”
Duncan McCourt, Chief Executive of Sustainable Aviation added:
“We need a well-designed revenue certainty mechanism to help accelerate domestic SAF production and support compliance with the mandate, kickstarting UK SAF production in earnest.”
The government promises to introduce a revenue mechanism to support the mandate.
Comment what you think about the prospects or consequences of the SAF mandate below.
