UK aviation industry warns that the cost of decarbonising air travel will lead to an increase in ticket prices and discourage some people from flying. Sustainable Aviation, an alliance of airlines, airports, and manufacturers including British Airways, Heathrow, and Airbus, stated that moving towards sustainable aviation fuel (SAF) would “inevitably reduce passenger demand”. The group further added that carbon offsetting schemes would also increase airlines’ costs.
According to Sustainable Aviation, SAF will account for at least 75% of the fuel used in UK flights by 2050, producing a 70% reduction in carbon emissions compared to traditional jet fuel. However, the cost of producing SAF is currently several times more expensive, which will have to be passed on to passengers, thereby leading to a “green premium” on air travel.
Matthew Gorman, the director of sustainability at Heathrow Airport and the chairman of Sustainable Aviation, acknowledged that the “green premium” would have “some impact on future demand” for air travel. However, Gorman added that the industry could still “grow significantly” as most people were willing to pay a bit more to travel.
Despite the challenges posed by the transition to green travel, Sustainable Aviation believes that the move presents a significant opportunity for the UK, which has the world’s third-largest global aviation network. The UK government is investing in the development of up to five new SAF production plants in the country. However, Sustainable Aviation is concerned that the UK may miss out on significant investment from the US and the rest of Europe, which offer tax incentives for investors.
To address this issue, the group has urged the government to introduce a mechanism to close the gap in price between SAF and traditional jet fuel. On Monday, ministers and aviation chiefs will unveil an action plan for decarbonising the aviation industry at Farnborough Airport. Transport Secretary Mark Harper said that the government was committed to helping the aviation industry accelerate new technology and fuels, modernise their operations, and work internationally to remove barriers to progress. Harper added that the aviation industry would continue to be a core part of the UK’s sustainable economic future.
