Company representatives gathered to express the need for a review of the EU RefuelEU regulations in view of supply constraints.
Major European airlines warned the European Commission about the lack of enough sustainable aviation fuel (SAF) available to meet the targets set by European regulations.
“We are paying very high prices, and there is simply not enough – that’s the reality,” said Luis Gallego, CEO of International Airlines Group (IAG), the parent company of Iberia and British Airways. Gallego was speaking on behalf of Airlines for Europe (A4E), an industry group representing 17 airlines including Lufthansa and Air France-KLM, at an event it held in Brussels, as reported by Business Recorder.
The EU’s RefuelEU regulation stipulates that airlines operating within the single market must use at least 2% SAF by 2025, increasing to 6% by 2030 and reaching 70% by 2050. However, airlines argue that there is insufficient SAF on the market, and producers are increasingly shifting back to fossil fuels.
The CEO also cited a Boston Consulting study that predicts a 30% shortfall in SAF by 2030 compared to what EU regulations will require.
Despite expressing a commitment to reducing emissions, Gallego stressed that the aviation business must remain “affordable and accessible for everyone”. He lamented that SAF is not only scarce but also three to five times more expensive than kerosene.
In addition, European carriers warned that the region is falling behind due to stricter regulations than in other parts of the world, which have tripled operational costs since 2014.
Benjamin Smith, CEO of Air France-KLM, urged the EU to grant more free emission rights to airlines under the Emission Trading System (ETS) and to avoid implementing green policies that inadvertently favor non-EU competitors.