Skift
• Meghna Maharishi
Virgin Atlantic CEO Corneel Koster criticized growing mandates for sustainable aviation fuel, arguing that customers should not be asked to pay more while SAF supply remains constrained and the promised environmental benefits are not being delivered. His comments highlight the tension between policy targets, fuel availability and airline cost pressures.
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Virgin Atlantic CEO Corneel Koster criticized growing mandates for sustainable aviation fuel, arguing that customers should not be asked to pay more while SAF supply remains constrained and the promised environmental benefits are not being delivered. His comments highlight the tension between policy targets, fuel availability and airline cost pressures.
The European Union is allocating $494 million in sustainable aviation fuel allowances to carriers for 2025. The funding provides direct support for airline SAF adoption while underscoring the growing role of policy mechanisms in meeting Europe’s aviation decarbonization objectives.
American Airlines will manage logistics for a new facility expected to produce up to 100,000 tonnes of eSAF annually. The supply agreement includes a group of buyers and partners including Google and McKinsey, adding another corporate-backed pathway for scaling synthetic aviation fuel.
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EASA says sustainable aviation fuel supplied across EU airports reached 2.79% in 2025, exceeding ReFuelEU Aviation’s first mandatory target. The agency identifies the 2030 6% mandate, synthetic e-fuels availability, high costs and feedstock dependence as major hurdles, while United and Neste expand supply at Chicago O’Hare and Amsterdam Schiphol.
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The UK’s Climate Change Committee says Heathrow’s proposed third runway is not currently compatible with national net-zero targets and carbon budgets. It recommends approval only if aviation funds the sustainable aviation fuel and permanent carbon removals needed to address the expansion’s additional emissions.
Singapore has delayed implementation of a levy on air cargo sustainable aviation fuel by one year. The postponement gives cargo operators and other industry stakeholders additional time before the policy takes effect, while extending uncertainty over the timing and cost of SAF-related compliance in the market.
United Airlines CEO Scott Kirby says government backing modeled on U.S. solar subsidies could help unlock sustainable aviation fuel production, including from corn and soy now used for biodiesel. He criticized Europe’s approach while arguing that stronger policy support is needed to overcome persistent supply constraints.
Paddy Lowe, founder of Zero Petroleum, is calling on airlines and governments to take greater risks to scale sustainable aviation fuels, as the company works to certify a “100% replica” of Jet A-1 produced from air and water.
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