The aviation sector is increasingly committed to achieving "Net Zero" emissions through new regulations and technological advancements. Major economies are emphasizing decarbonisation, with initiatives like blending mandates for sustainable aviation fuel (SAF) and the development of greener aircraft and efficient engines. Despite kerosene remaining dominant due to cost and practicality, the industry is exploring alternative fuels and innovative engine designs, including open rotor concepts that could improve fuel efficiency by over 20%.
Regulatory measures such as the EU’s ReFuelEU and the UK’s SAF Order mandate progressively increasing SAF blending requirements aim to reduce carbon emissions from aviation. These policies, coupled with infrastructure investments at airports worldwide, encourage airlines to adopt sustainable fuels, sometimes passing costs onto consumers through surcharges. However, geopolitical tensions and supply chain shortages of aircraft, engines, and parts in 2026 pose additional challenges to compliance and industry growth.
Emerging technical solutions like hybrid and electric aircraft, hydrogen research, and carbon capture are also under consideration, but currently face economic and operational hurdles. As the industry navigates these complex pathways, supply shortages and geopolitical uncertainties are expected to influence leasing terms, fleet management, and technological adoption, shaping the future of sustainable aviation amid ongoing global tensions.
