IATA Warns: Global SAF Supply Falls Far Below Expectations

The International Air Transport Association (IATA) warned on Tuesday that the global aviation sector is unlikely to meet its sustainable aviation fuel (SAF) targets in the coming years, citing disappointing progress from fuel producers and regulators. SAF, typically made from waste materials or used cooking oil, can significantly cut emissions but remains two to five times more expensive than conventional jet fuel.

IATA projects that SAF supply will reach only 2.4 million tons in 2026, equal to 0.8% of global jet fuel consumption. After doubling output from 2024 to 2025, the industry is now expected to add just 0.5 million tons in the following year. Director General Willie Walsh said production is far below expectations and risks undermining aviation’s 2050 net-zero pledge.

Airlines insist they are willing to purchase all available SAF but accuse producers of inflating prices and failing to scale supply. IATA also noted that EU and UK mandates have pushed SAF prices even higher, with Walsh describing the behavior as “price gouging.”