The IAG group, which owns British Airways, Iberia, Vueling and Aer Lingus, said Friday that it used 16% of the world’s total sustainable aviation fuel (SAF) supply in 2024.
IAG isn’t even among the top 10 largest airlines in the world by fleet size, passenger numbers or distance flown, according to Flightradar. The group said it is disproportionately affected by regulations and mandates around greener fuel.
In its annual report, IAG said differing policies and levels of government support in the EU and UK may result in a disproportionate impact on the company, as much of its business happens in this region.
IAG CEO Luis Gallego spoke about the company’s climate targets and SAF during the meeting.
“The main focus is to ensure that we are well placed to meet regulatory mandates. We continue to put in place firm contractual commitments for sustainable aviation fuel, which differentiates us
from most other airlines,” Gallego said.
“As a result, 1.9% of the fuel we used in 2024 was SAF, meaning we are very well placed for a 2% mandate in both the U.K. and EU in 2025.”
Both the UK and the EU have enacted SAF mandates, starting at 2% and increasing over time. The UK’s target will rise to 22% by 2040, while the EU aims for 70% by 2070.
China and the U.S. are introducing similar regulations and many airlines around the world are also trying to increase their SAF use.
However, concerns remain over SAF supply shortages and differing global regulations.
“Sustainable aviation fuel (SAF) infrastructure and availability still lags demand, impacting the ability to achieve the aviation industry’s carbon reduction commitments. Overall aviation industry requirements will require infrastructure investments across markets to support the production of SAF to meet demand expectations,” the IAG report said.
The International Air Transport Association (IATA), estimated that SAF production reached 1 million tonnes in 2024, still far below what the industry needs. This accounted for just 0.3% of global jet fuel production.
The EU previously said it is investing in SAF and that the mandate will ramp up slowly to address concerns about supply problems.
A UK Department for Transport spokesperson previously told Hospitality career profile that the government is providing £63 million ($79.5m) to boost production of SAF.
Hospitality career profile’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Hospitality career profile to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Hospitality career profile’s editorial team.
