Airline CEOs express concerns over SAF adoption amid high cost, limited supply

Airline executives from across the globe voiced cautious optimism but strong concern over the viability of SAF during a CEO panel discussion at the International Air Transport Association's annual general meeting in New Delhi this week, citing high costs, limited supply and significant regional disparities.

While SAF is widely seen as a key tool in aviation's push toward net-zero emissions by 2050, the airline chiefs said progress is constrained by economic and logistical realities that are outpacing ambition.

"It has got to be affordable," Joanna Geraghty, CEO of US carrier JetBlue, said. "The public cares, but I don't think it necessarily translates into whether they're willing to pay for it."

Globally, SAF production is expected to double to around 2 million mt in 2025, according to IATA, still less than 1% of total jet fuel use.

The cost of that SAF, estimated at three to five times the price of fossil jet fuel, could add $4.4 billion to the global airline industry's fuel bill this year alone.

JetBlue is set to become the first airline to use SAF at New York's JFK airport, but Geraghty emphasized that demand from cost-conscious US passengers remained low -- especially when greener tickets are more expensive.

"If SAF is not affordable, customers aren't willing to pay more for it," she said, calling for greater government subsidies to support its adoption.

In July 2024, the airline entered a 12-month agreement with Valero Energy and World Fuel Services to supply a minimum of 3.3 million gallons of blended SAF at New York's JFK Airport, with an option to purchase up to an additional 13.3 million gallons.

The SAF, produced from feedstocks like agricultural waste and used cooking oils, is blended with conventional jet fuel and is expected to reduce greenhouse gas emissions by about 80% compared with traditional jet fuel.

JetBlue's commitment to SAF extends beyond JFK. The airline has been procuring SAF for its operations in San Francisco and Los Angeles, doubling its SAF procurement year over year since 2020.

Also, JetBlue has signed an agreement with Air Company to purchase 25 million gallons of Airmade SAF over five years, starting in 2027. This carbon-negative fuel is produced by capturing CO₂ and converting it into aviation fuel using renewable electricity.

For many airlines operating outside North America or Europe, SAF isn't just expensive, according to the industry leaders, it's practically unavailable.

"In India, we don't have SAF," said Pieter Elbers, CEO of IndiGo, Asia's largest low-cost airline by fleet size. "Should we buy SAF from other parts of the world, ship it in tankers, and burn fuel just to say we're using it? Is that really a solution?"

Elbers warned that SAF imports from abroad could undercut local food security if feedstocks compete with agriculture.

Instead, IndiGo is focusing on practical measures: operating a modern and efficient fleet (with an average aircraft age of just four years), electrifying ground operations and optimizing procedures.

"If the production cost cannot be lowered and if options like synthetic fuel aren't scaled, this is not going to happen at the level we hope," he said.

IndiGo has joined the World Economic Forum's Clear Skies for Tomorrow initiative, targeting scalable SAF production by 2030, but Elbers emphasized that technological breakthroughs and region-specific solutions are needed.

Industry leaders agreed that high costs and limited supply were hindering SAF adoption.

Adrian Neuhauser, CEO of Latin America's Abra Group, which operates Avianca and GOL, echoed these sentiments.

"This is one of the hardest sectors to decarbonize," he said. "You need a safe, high energy-density fuel that works in extreme conditions. SAF is part of the answer, but it's not the whole one."

Neuhauser said customer behavior rarely changes based on sustainability options at checkout.

"If you put carbon offsets in the booking flow and they cost more than $5, no one picks it up," he said.

FedEx has committed to achieving carbon neutrality by 2040.

The company has entered a partnership with Neste to purchase a significant amount of SAF at Los Angeles International Airport.

This deal includes a minimum of 30% neat, or unblended, SAF, the delivery of which began in May and will continue for one year.

Richard Smith, CEO of Airline-FedEx and chief operating officer of FedEx International, highlighted the importance of corporate partnerships and carbon capture investments in closing the gap left by SAF shortages.

Recognizing the limitations of SAF availability, FedEx has invested $100 million in the Yale Center for Natural Carbon Capture to develop carbon sequestration technologies.

He noted a clear geographic split in customer behavior.

"In Europe, clients will pay for greener options," Smith said. "They'll even require EVs for delivery. But in the US, it's mostly about cost."