Speaking from IATA’s Geneva headquarters, Director-General Willie Walsh warned that the airline industry is likely to miss its near-term sustainable-aviation-fuel (SAF) targets because production is running “well below expectations.” Current SAF volumes cover just 0.3 percent of global jet-fuel use and are projected to reach only 0.8 percent by 2026, far short of the trajectory needed for the sector’s 2050 net-zero pledge.
Walsh blamed producers for price gouging, claiming airlines are willing to buy all available SAF even though it costs two-to-five times more than conventional fuel. IATA Chief Economist Marie Owens Thomsen added that EU and UK blending mandates have paradoxically encouraged suppliers to raise prices further.
![IATA in Geneva Warns Sustainable-Fuel Targets Slipping as Supply Lags]()
For Switzerland—home to major corporate flyers and two globally connected hubs—the shortfall complicates sustainability strategies. SWISS and Helvetic Airways have signed multi-year SAF purchase agreements but will struggle to secure volumes if producers cannot scale up. Travel managers fear higher ticket prices or environmental-surcharge pass-throughs just as companies face tightening ESG disclosure rules.
Walsh urged governments to provide investment incentives and clearer long-term policies to de-risk refinery projects. Swiss policymakers are watching closely: Bern’s draft Aviation Climate Roadmap counts on SAF for 15 percent of airline emissions cuts by 2030. Without supply, carriers may need to buy more carbon offsets or curtail growth—moves that could ripple through Switzerland’s export-driven economy.
Walsh blamed producers for price gouging, claiming airlines are willing to buy all available SAF even though it costs two-to-five times more than conventional fuel. IATA Chief Economist Marie Owens Thomsen added that EU and UK blending mandates have paradoxically encouraged suppliers to raise prices further.
For Switzerland—home to major corporate flyers and two globally connected hubs—the shortfall complicates sustainability strategies. SWISS and Helvetic Airways have signed multi-year SAF purchase agreements but will struggle to secure volumes if producers cannot scale up. Travel managers fear higher ticket prices or environmental-surcharge pass-throughs just as companies face tightening ESG disclosure rules.
Walsh urged governments to provide investment incentives and clearer long-term policies to de-risk refinery projects. Swiss policymakers are watching closely: Bern’s draft Aviation Climate Roadmap counts on SAF for 15 percent of airline emissions cuts by 2030. Without supply, carriers may need to buy more carbon offsets or curtail growth—moves that could ripple through Switzerland’s export-driven economy.
