IATA Director General Willie Walsh has publicly criticised fuel suppliers for exploiting Sustainable Aviation Fuel mandates to inflate prices beyond actual production costs, calling the practice ‘completely unacceptable price gouging’.
Walsh argues that whilst the EU’s 2 per cent SAF blending mandate—rising to 6 per cent by 2030—aims to accelerate green aviation, it has instead enabled fuel suppliers to add compliance surcharges that nearly double SAF costs compared to market rates. With SAF already costing three to five times more than conventional jet fuel, these additional charges create significant financial burdens for airlines.
‘They have, in effect, facilitated price gouging by fuel suppliers in the name of the environment,’ Walsh stated, calling for European regulators to eliminate the mandates.
Several sources believe that incentives to implement SAF could be more beneficial than mandates.
The IATA chief emphasises that high prices stem not from feedstock scarcity but from failure to scale production technologies beyond current HEFA methods. He’s urging fuel producers to increase investments in SAF production to meet the industry’s 2050 net-zero commitment.
Energy companies counter that insufficient demand doesn’t justify ramping up production, leading several to scale back SAF refinery projects. This creates a problematic cycle—mandates drive surcharges rather than production increases, potentially undermining the embryonic SAF market they’re designed to stimulate.
The airline industry remains committed to achieving net-zero emissions by 2050, but Walsh argues this requires genuine investment and supportive policies, not what he calls ‘monopoly suppliers’ profiteering from environmental mandates.
