- Lufthansa will add a surcharge of up to £61 per flight from January 1, 2025, to cover the costs of using sustainable aviation fuels (SAF).
- European Regulations mandate a 2% SAF blend by 2025, increasing to 70% by 2050, with even stricter targets in the UK.
- SAF Demand could soon exceed supply, particularly for waste oil, raising concerns about mislabelled biofuels and increased imports from Asia.
Lufthansa will add a surcharge of up to £61 per flight beginning January 1, 2025, to cover the rising costs of using sustainable aviation fuels (SAF). This surcharge will apply to flights from the European Union, the UK, Switzerland, and Norway, with fees starting at approximately 85p, depending on the route and distance travelled.
This decision aligns with the European Union’s upcoming regulations that require airlines to integrate at least 2% SAF into their fuel mix by 2025, increasing to 70% by 2050. The UK has set even stricter short-term SAF targets. SAF, made from biofuels like used cooking oil, can cut carbon emissions by up to 80% compared to conventional jet fuel.
Lufthansa emphasises the need to pass these costs to passengers to meet new environmental standards without compromising operational viability. This follows similar actions by Air France and KLM, which introduced surcharges of up to £10 per flight last year to manage increased SAF costs.
Transport and Environment, an environmental organisation, highlights the challenges of meeting the growing global demand for SAF. They warn that demand for waste oil, essential for producing SAF, may soon exceed the supply capabilities of primary producers, especially China, the leading provider. The NGO expresses concerns about the potential increase in imports from Asia, which could lead to more virgin biofuels being mislabelled as sustainable, including palm oil from Malaysia, which is associated with deforestation and environmental harm.
A recent study shows that achieving global SAF targets for 2030 will require more than twice the amount of used cooking oil collected in the United States, Europe, and China combined. This shortage underscores the aviation industry’s significant challenges in transitioning to more sustainable practices.
Lufthansa’s surcharge announcement marks a pivotal step in the airline industry’s shift towards greener fuels. Both regulatory requirements and the urgent need to reduce aviation’s carbon footprint drive this transition. As airlines navigate these changes, the financial impact on passengers and broader implications for the biofuel market will continue to develop.