Structural Shifts Increase Jet Fuel Crack Risks
Fuel is the largest operating expense for airlines. Jet fuel costs more than crude oil, and the difference between the two is called the jet fuel crack spread. Given the historically strong correlation between jet fuel and crude oil prices, airlines have been able to manage fuel price exposure primarily through crude oil market risks. […]
Chart of the Week: Emissions Penalties Due to Aircraft Delivery Delays
Fleet renewal is an important decarbonization lever for the air transport industry, but significant delivery delays are slowing progress and forcing operators to use older aircraft with higher fuel consumption. As many as 1,662 aircraft replacements were estimated to be delayed until 2025. Delayed aircraft deliveries impose on airlines the deferral of their fleet renewal. […]
Air Canada and Airbus launch joint initiative to scale domestic Canadian SAF and help reduce the life-cycle emissions of corporate travel
Air Canada, the country’s largest airline and flag carrier, and Airbus, a global leader in aerospace manufacturing with the largest commercial aircraft industrial footprint in Canada, are uniting their shared commitment to aviation decarbonisation. To lead the way in advancing these goals, the two aviation pioneers are proud to announce their intent to establish a […]
Delta expands SAF access through multi-airport collaboration with Shell Aviation
Delta Air Lines is scaling SAF through a multi-airport collaboration supported by Shell Aviation that aims to expand SAF availability and adoption. Together, the two companies will expand SAF availability across key U.S. hubs and priority cities — including Los Angeles International Airport (LAX), Portland International Airport (PDX), John. F. Kennedy International Airport (JFK), Logan […]
Brazil’s Opportunity to Be a SAF Powerhouse
The International Air Transport Association (IATA) highlighted Brazil’s opportunity to become a SAF powerhouse as its 82nd Annual General Meeting gathered in Rio de Janeiro, Brazil. This would make Brazil a key player in air transport’s decarbonization, strengthen energy security, and grow Brazil’s economy. Key points to note include: Airlines will need some 500 million tonnes (Mt) of […]
Middle East Disruptions and High Fuel Prices Halve Airline Industry Profitability
The International Air Transport Association (IATA) released its latest financial outlook for the global airline industry showing a halving of profitability as a result of war-related Middle East disruptions and high fuel prices. The regional landscape, however, is highly differentiated. At the geographic center of the Middle East war, airlines in the Middle East are […]
SAF Production Volumes Still Disappointing
The International Air Transport Association (IATA) released estimates showing that global Sustainable Aviation Fuel (SAF) production is expected to reach around 2.4 million tonnes in 2026, representing just 0.8% of aviation fuel use, at a cost to airlines of $4.3 billion. “It looks to be another disappointing year for SAF production. Five years after committing to achieve […]
ICAO-IATA deepen cooperation on boosting sustainable aviation fuels
The International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) announced enhanced cooperation at ICAO Aviation Climate Week today to advance transparency and integrity in tracking progress and accelerating the development and deployment of Sustainable Aviation Fuels (SAF). Close collaboration between industry and states, underpinned by robust systems and high-quality data, will […]
Kenya Airways Signs Deal for Africa’s First Sustainable Aviation Fuel Refinery
Kenya Airways has signed a landmark agreement to develop Africa’s first dedicated sustainable aviation fuel refinery in what will be a major step towards advancing sustainable aviation in Africa. The National Carrier entered into a memorandum of understanding with Rubis Energy Kenya on Tuesday, May 12, to set UP the first dedicated sustainable aviation fuel […]
LATAM Cargo teams up with Quick Cargo Service on SAF
LATAM Cargo and freight forwarder Quick Cargo Service are teaming up on the use of Sustainable Aviation Fuel (SAF) on flights between Europe and South America. The new partnership will see the two companies incorporate SAF into their operations between Frankfurt and São Paulo during the 2025–2026 winter season, running from late October through March. […]
