Sustainable Aviation Fuel production volumes still disappointing, says IATA DG Willie Walsh

The International Air Transport Association (IATA) has released estimates showing that global production of Sustainable Aviation Fuel (SAF) is expected to reach about 2.4 million tonnes in 2026, However, this would account for just 0.8% of total aviation fuel consumption worldwide, while costing airlines $4.3 billion.

“It looks to be another disappointing year for SAF production. Five years after committing to achieve net zero by 2050, SAF production will only account for 0.8% of airline fuel use this year. The path to meeting 65% of our needs in 2050 is growing more difficult with each year of ineffectively sequenced government policies and oil companies’ manifest lack of interest,” said Willie Walsh, IATA’s Director General.

“The current energy shock should add even more urgency to the development of renewables, including SAF. But we have yet to see either the energy shock, the need to develop energy independence and jobs, or the urgency to mitigate climate change materialize in the incentives needed to create a viable SAF market,” he added.

William Walsh, the current DG of the International Air Transport Association and former chief of the British Airways, had been appointed as IndiGo’s new chief executive officer (CEO) on March 31. His tenure as head of the global airline industry body comes to a close on July 31, and he is expected to join IndiGo no later than August 3, the airline said in a statement earlier.

How IATA Plans to accelerate the scale-up of SAF?

According to a release, IATA is calling for coordinated action across four priorities to accelerate the scale-up of SAF. These include:

• Expand renewable energy supply to underpin SAF production and ensure sufficient feedstocks and clean energy are available
• Ensuring open access to fuel infrastructure, including pipelines, storage, and airport fuel systems, to enable fair competition and efficient distribution.
• Strengthen policy support through effective sequencing of production incentives and investment frameworks that provide certainty and reduce risk before any mandates are implemented.
• Enable a global SAF market with sufficient volumes at commercially viable prices critical for the airline financial and economic sustainability.

“A book-and-claim system is essential to transform the SAF market from local to global by making it accessible to airlines and SAF producers regardless of their domicile. A global SAF market must also be supported by harmonized standards that create enduring rules and fair competition,” the release said.

E-SAF production lags far behind 2030 target

In addition to biofuel-based SAF, IATA said that e-SAF (electro-SAF) is also expected to play a growing role in reducing aviation emissions. e-SAF is produced through a power-to-liquid process that converts renewable electricity into aviation fuel. Unlike conventional SAF, it does not rely on biomass or waste oils, but requires large quantities of renewable electricity, green hydrogen, water, and carbon dioxide.

According to IATA, the EU and the UK have mandated e-SAF production of around 0.6 million tonnes by 2030. However, global production capacity currently operating and under construction stands at around 0.02 million tonnes with only one single production site in operation.

“It would take approximately 20 commercial-scale refineries to achieve the mandated volume. No new final investment decisions for e-SAF facilities have been made over the past year,” the release said.

Passengers continue to support decarbonisation of air transport

The latest IATA passenger survey (April 2026) shows strong and consistent support for decarbonising air transport, the release said, adding that 89% of passengers believe the industry should continue reducing emissions even if governments scale back their efforts, and a similar share sees flying as essential and as something that must be made sustainable, rather than restricting its use.

The report also said that sustainability is already influencing behaviour as nearly half of travelers (48%) look at carbon emissions when choosing flights, and among those who do, over 85% say it affects their decision, while around three-quarters say they prefer airlines with stronger environmental performance.

Overall, the findings suggest that passengers expect the aviation industry to reduce its carbon footprint and are generally supportive of efforts to make air travel more sustainable. While factors such as ticket prices and convenience continue to influence travel decisions, sustainability is becoming an increasingly important consideration for travellers, the release said.