The production of Sustainable Aviation Fuel (SAF) will double this year, according to a statement from the International Air Transport Association (IATA).
That benchmark equates to about 2 million metric tons of fuel, or about 0.7% of the airlines’ fuel consumption. This increase will add about $4.4 billion globally to aviation’s total fuel bill.
Our Analysis: Despite the Increase, Airlines May Struggle to Meet Sustainability Goals
Back in 2021, the global aviation sector agreed on a shared goal to meet net-zero emissions by 2050, the result of a gradual switch over to SAF. And although it’s encouraging to see the increase in production of SAF this year, IATA reiterated that several challenges stand in the way of airlines reaching the net-zero goal.
Since SAF (made from waste oil and biomass) is still in limited supply – and extremely expensive to produce – the trade group is cautioning that progress is still too slow, and that challenge is further compounded by the industry’s delay in delivering more fuel-efficient jets. Much more urgent work must be done of the goal is to be met.
What They Are Saying: Progress Is Too Slow
"The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate," said Willie Walsh, director for IATA, in a statement. “The behavior of fuel suppliers in fulfilling the SAF mandates is an outrage. The cost of achieving net-zero carbon emissions by 2050 is estimated to be an enormous $4.7 trillion. Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.”
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Fast Facts: The State of the Aviation Industry in 2025
- The first half of 2025 has been marked by global market uncertainties, yet airlines are projected to perform better than in 2024 in terms of net profits.
- Overall performance will be slightly below earlier forecasts.
- A key positive factor is a 13% drop in jet fuel prices compared to 2024, and 1% below prior estimates.
- Airlines are expected to carry more passengers and cargo this year than in 2024.
- Demand projections have been affected by trade tensions and reduced consumer confidence.
Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.
- Net profit margins are expected to rise from 3.4% in 2024 to 3.7% in 2025.
- This margin is still about half the average across all industries.
- IATA director general Willie Walsh says the results highlight the resilience airlines have built despite challenging conditions.
- According to IATA, “the average cost of SAF in 2024 was 3.1 times that of jet fuel, for a total additional cost of $1.6 billion. In 2025, the global average cost for SAF is expected to be 4.2 times that of jet fuel. This extra cost is largely the result of SAF 'compliance fees’ being levied by European fuel suppliers to hedge their potential costs as a result of European SAF mandates to include 2% SAF in the jet fuel supply.”
