The UK’s Sustainable Aviation Fuel (SAF) mandate, which requires two per cent of all UK-bound flights to use SAF, came into force on 1 January and is expected to increase prices for airlines and for passengers.
The mandate obliges SAF suppliers to produce and provide two per cent SAF of the total UK jet fuel requirement for departing flights.
This target could be a challenge given that there is only one SAF plant in the UK, the UK Aviation Minister said. Mike Cainadmitted that the rest of the SAF would be imported from abroad.
Currently, SAF costs three to four times more than jet fuel, but Kane suggests the cost passed on to consumers will be “reasonably small”. travelweekly.co.uk.
In contrast, the UK government’s own impact assessment admits that the mandate could add up to £302.40 (R7 070) to the cost of tickets for a family of four, the paper first reported telegraph.co.uk:finds that 80% of the cost of the new toll can be passed on to passengers.
Airlines including Virgin Atlantic have raised the prospect of introducing a green levy to meet the new costs, while others such as Lufthansa have already introduced the levy in preparation for the mandate. has already warned that the SAF mandate will lead to higher fares for passengers.
Willie WalshIata’s director general warned that the mandate had not and could not boost SAF production as the UK government believed.
“There’s a belief that if you mandate SAF, it’s not happening. The industry can’t do it on its own. We’re not seeing that much action from them.”
He argued that the mandates could lead to SAF suppliers being fined if not enough SAF is produced.
“They (SAF providers) will just pass the cost (of these fines) on to the airlines, and they will inevitably pass it on to consumers,” Walls said.