Fares rise to fund airlines’ switch to greener fuels

Passengers will bear the brunt as airlines undertake the multi-trillion-dollar transition to greener fuels, aviation experts have said.

Sustainable aviation fuel (SAF) allows airlines to reduce their carbon emissions by up to 80 percent without modifying engines – but it is three to five times more expensive than traditional jet fuel. 

These extra costs “will be cascaded on to the passenger” with higher fares, Maryam Al Balooshi, lead negotiator for climate change at the UAE’s General Civil Aviation Authority, told AGBI.

She added that “trillions of dollars in investment” were needed to increase SAF production enough to meet the industry’s sustainability targets.

Ryan Faucett, vice president of global sustainability engagements and policy at Boeing, also said “mobilising finances” was the biggest challenge.

• Opinion: The Gulf is well-placed to soar on SAF – but not yet

“There are enough announced projects globally that we should be able to meet the ambition of the industry. The challenge is to get from announcement to actual construction,” Faucett said.

The US plane manufacturer, which supplies at least 19 carriers in the Middle East, has an outstanding order book of more than 6,000 jets owing to supply chain disruptions. 

Watch the full video to find out how the aviation industry’s transition will affect passengers – and could support 1 million jobs in the UAE