Sustainable aviation fuel (SAF) production in 2025 has doubled compared to the previous year, according to estimates by the International Air Transport Association (IATA). The industry anticipates reaching 1.9 million tonnes, or 2.4 billion litres, representing a modest share of global jet fuel consumption of less than 1%. Growth is expected to slow in 2026, with production increasing to 2.4 million tonnes.
Despite these gains, SAF remains a tiny fraction of total fuel used for aviation, with prices significantly above fossil jet fuels—up to five times higher in some markets. The high costs are partly attributed to policy challenges and market inefficiencies, with recent mandates in Europe and the UK failing to stimulate the desired increase in production.
Willie Walsh, the Director General of IATA, criticized these policies for raising costs and hindering growth in SAF. He highlighted that airlines paid nearly $3 billion more for SAF in 2025 due to market distortions, underscoring the need for better incentives rather than mandates.
The report warns that slow progress may compel airlines to reassess their climate commitments and SAF usage targets, especially in light of the high costs of synthetic aviation fuels (e-SAF), which could be up to twelve times more expensive than conventional fuel. Experts emphasize the importance of policy adjustments that promote sustainable, scalable SAF production, enabling industry-wide decarbonization.
