As the European Union pushes forward with its ambitious plan for carbon-neutral air travel, the continent’s major European airlines are expressing concerns. Under the Airlines for Europe (A4E) umbrella, carriers ranging from Ryanair to Lufthansa are advocating for a delay in the sustainable aviation fuel (SAF) requirements. They caution that a worldwide supply scarcity could hinder their environmental objectives—and potentially increase passenger fares.
From 2% to 70%, Is It Possible?
The EU’s ReFuelEU Aviation initiative stipulates that, starting this year, a minimum of 2% of jet fuel at European airports must be SAF. This target increases to 6% by 2030, and a substantial 70% by 2050. These biofuels, originating from various sources like biomass, waste oils, and renewable electricity-derived hydrogen, are crucial for diminishing aviation’s significant climate impact. The sector accounts for roughly 3% of global CO2 emissions directly; however, contrails and other pollutants amplify the overall warming impact.
During a recent video conference from Paris, A4E members voiced their apprehension. “The incorporation obligations are not achieving the intended outcome,” stated Luis Gallego, CEO of the IAG group—parent company to British Airways and Iberia—representing the alliance. The core issue? SAF production demand is largely Europe-based, but the supply is globally dependent, making European airlines susceptible to import challenges and price fluctuations.
Gallego plainly stated that he believes a delay in the rollout will be necessary, “unless there are any significant changes.” Similar to automotive manufacturers requesting flexibility on the 2035 combustion-engine ban, A4E is requesting a “strategic dialogue” with the European Commission to reassess the targets without compromising decarbonization efforts.
From Low-Cost to Legacy Carriers
A4E boasts a membership of 17 major European airlines, including Air France-KLM, easyJet, Lufthansa, and Ryanair. All are committed to achieving net-zero emissions by 2050, aligned with the global industry’s goals through the International Air Transport Association (IATA). SAF is considered critical for achieving a 65% reduction in emissions, but increasing its production remains a significant hurdle. Current output falls short of the mandates, with a substantial portion being imported.
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EasyJet CEO Kenton Jarvis emphasized the urgency, stating, “We are urging both the European Commission and national governments to act decisively, as we need assistance in encouraging major hydrocarbon producers to supply more SAFs.” This appeal extends beyond airlines; IATA has also expressed concerns about the feasibility of the regulations. Even the Cruise Lines International Association (CLIA) acknowledges shared challenges in decarbonizing the maritime sector.
Recent analyses highlight the predicament. A Deloitte study for A4E cautions that strict regulations could trigger “carbon leakage”—shifting emissions to regions with less stringent rules—while diminishing Europe’s attractiveness as a travel destination. Additionally, a Transport & Environment report points out potential bottlenecks in e-SAF (electrofuels), Europe’s potential advantage, which could jeopardize its first-mover position.
Green Goals vs. Affordable Flights
A4E maintains that it’s not abandoning sustainability, but rather advocating for a pragmatic approach. “Our members remain dedicated to decarbonizing their operations,” the group emphasized, but “this should not compromise competitiveness and accessible air travel.” Given that SAF prices are three times higher than conventional kerosene, strict quotas could strain profit margins, increase fares, and hinder connectivity during the post-pandemic recovery.
At the April A4E summit, this sentiment was reinforced, with a formal call for mandate delays due to production shortages. Proponents argue that incentives, such as the EU’s proposed Book & Claim system for global SAF credits, could bridge the gap without needing exemptions.
As Brussels considers these requests, the future remains uncertain. Will the Commission agree to a delay to prevent potential fuel-related issues, or will it remain firm to ensure Europe leads in the climate effort? Airlines are currently bracing themselves for what is likely to be a bumpy ride. The hope is that any turbulence encountered won’t ultimately derail their larger journey toward achieving net-zero emissions.