Malaysia Airlines parent company may consider a green tax as sustainable fuel strains airlines

October 20, 2026 |

In Malaysia, Wral News reported that the head of Malaysia Airlines’ parent company said he doesn’t rule out a green tax on passengers to help offset high costs of sustainable aviation fuel.

Neighboring Singapore was the first in the world to announce a government-mandated green aviation tax from January 2027, with charges varying by destination and cabin class.

“We are looking at all options,” said Nasaruddin Bakar, head of Malaysia Aviation Group. “Consumers must be able to afford it. The airline must be able to afford to buy it.”

Nasaruddin said his group will focus on fleet renewal and also on the use of SAF as part of its commitment to cut emissions.

While the decision on a green tax is up to the government, Nasaruddin said regulators, fuel suppliers and airlines must work together to lower SAF costs, warning that passing the full expense to consumers could make air travel less attractive.

More on the story.

Category: SAF

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