IATA release new estimates for SAF production
In Switzerland, the International Air Transport Association (IATA) released new estimates for SAF production showing that SAF output is expected to reach 1.9 million tons this year, double the 1 tons produced in 2024.
However, in 2026, SAF production growth is projected to slow down and reach 2.4 tons, IATA said.
“SAF production in 2025 represents only 0.6% of total jet fuel consumption, increasing to 0.8% the following year. At current price levels, the SAF premium translates into an additional $3.6 billion in fuel costs for the industry in 2025,” the entity said.
“The estimated SAF output for 2025 of 1.9 tons is a downward revision from IATA’s earlier forecasts due to lack of policy support to take full advantage of the installed SAF capacities. SAF prices exceed fossil-based jet fuel by a factor of two, and by up to a factor of five in mandated markets,” it added.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry. If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park. But if the objective is to increase SAF production to further the decarbonization of aviation, then they need to learn from failure and work with the airline industry to design incentives that will work,” said Willie Walsh, IATA’s Director General.
Category: SAF
