High SAF production costs will not deter airlines, says Walsh
Sustainable aviation fuel (SAF) will stay more expensive than kerosene even when large-scale production begins, but the cost will not stop airlines from their emission targets, International Air Transport Association (IATA) head Willie Walsh said.
IATA previously estimated that SAF could contribute around 65% of the reduction in emissions needed by aviation to reach net-zero emissions by 2050, Reuters reported.
“I truly believe SAF will always be priced at a premium to kerosene,” Walsh told a conference in Lisbon.
“I believe the industry is ready to embrace that. The industry recognises the problem, is doing everything it can to address it and we will achieve the targets because there isn’t an option here.”
He expected the price of SAF to come down when deliveries reach a large scale, compared to “tiny volumes” now, though it will remain at a premium to kerosene.
The CEO of British Airways and Iberia owner IAG, Luis Gallego, said travel would become more expensive as a result of the decarbonisation effort, but the sector was hopeful it could maintain affordable ticket prices.
“That’s the challenge, but we don’t have any alternative, but to meet the targets,” he told Bloomberg TV during the course of the event. “What we need is production of SAF. It doesn’t make sense to bring SAF from the United States and put it in our planes in Europe.”
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