In the UK, Travel Weekly reported that IATA estimated the average cost of sustainable aviation fuel to be more than three times the price of jet fuel last year, adding $1.6 billion to airlines’ fuel bill. The association calculates the average cost of SAF worldwide this year will be even higher at 4.2 times the price of jet fuel, and it argues this “is largely the result” of SAF ‘compliance fees’ levied by fuel suppliers in Europe to cover their potential costs of compliance with EU and UK SAF mandates, according to the report. These require a minimum average 2% of fuel on departing flights comprise SAF over the course of this year, subsequently rising each year to at least 6% SAF in the EU and 10% in the UK by 2030, it added. The report also noted that IATA forecast SAF production would grow to two million tons this year, double the amount produced last year, but will still account for only 0.7% of airline fuel.
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