IATA warns of the slowdown in the production of sustainable aviation fuels

The International Air Transport Association (IATA) reported that global production of sustainable aviation fuel (SAF) will reach 1.9 million tons in 2025, double that of 2024. However, by 2026 supply would only rise to 2.4 million tons, reflecting a clear slowdown in the growth rate.

Despite the progress, SAF continues to represent a minimal portion of the sector's total fuel consumption: 0.6% in 2025 and barely 0.8% projected for 2026. Added to this is the economic impact, since the price difference compared to conventional fuel will generate an estimated additional cost of $3.6 billion for the industry in 2025 alone.

IATA attributes this slowdown to regulatory mandates considered “poorly designed” and a lack of incentives to boost production capacity. In markets such as the European Union and the United Kingdom, current regulations have increased costs without guaranteeing sufficient expansion of supply.

The situation is particularly worrying in light of the e-SAF mandates planned for the coming years. The industry warns that this type of fuel could cost up to 12 times more than traditional fuel, generating a cumulative impact of nearly €29 billion by 2032 if the current course is not corrected.

IATA is calling on regulators to implement policies that truly encourage investment in sustainable production, in order to keep pace with growing demand and prevent decarbonization goals from becoming unattainable.

Source: IATA