Green Jet Fuel Shortage Risks Higher Airfares

Key Points

• A shortage of sustainable aviation fuel (SAF) could significantly raise airfares and limit travel options, according to the World Travel and Tourism Council.
• Current SAF production is just 0.3% of global jet fuel use, far below what is required to meet airline net-zero targets and comply with new regulations.
• SAF is much more expensive than conventional fuel, but governments and industry are working to boost production despite disagreements about progress and policy clarity.

Summary

The World Travel and Tourism Council warns that a significant shortfall in sustainable aviation fuel (SAF) could drive up airfares and restrict travel, as current SAF production is far below what is needed for airlines to meet net-zero goals and new regulatory requirements. SAF costs up to ten times more than conventional jet fuel, largely due to limited supply, high production expenses, and a lack of infrastructure. While many governments are setting mandates and investing in SAF, industry stakeholders disagree about whether enough progress is being made to avoid future shortages and price hikes.