Passenger traffic demand is expected to grow 3.6% annually over the next 20 years, driving the need for new, fuel-efficient aircraft.

The Asia-Pacific region is the largest market for single-aisle aircraft, while Europe is the fastest-growing.

The global single-aisle aircraft market is projected to reach $222.20 billion by 2030, growing at 12.5% from 2023-2030.

Airlines are prioritizing fuel-efficient aircraft, driving demand for new models, particularly in the narrow-body segment.

Asia-Pacific, Europe, and North America account for 80% of global demand for fuel-efficient aircraft, with North America having the highest demand at 9,160 aircraft.

Single-aisle aircraft account for 75% of new deliveries, driven by demand for 19,000 civilian aircraft worth $3.2 trillion over the next decade.

The global aerospace industry is shifting towards innovation and sustainability, with companies like Boeing and Airbus investing in research to reduce emissions and increase fuel efficiency.

The major aircraft manufacturers are dominated by Airbus, Boeing, and Bombardier, with China emerging as a competitor.

The global sustainable aviation fuel market is expected to reach $2987.5 million by 2027, driven by regulations and demand, with North America being a key growth area.

Airlines are demanding sustainable aviation fuel to reduce emissions, driving market growth, despite the price difference with conventional jet fuel being a challenge.

The aviation industry aims to reach zero carbon emissions by 2050, aided by sustainable fuel and driven by government restrictions on emissions.

NASA and partners, including Boeing, are investing in the development of a low-emission aircraft, with NASA contributing $425 million.

The market dynamics for sustainable aviation fuel vary by region, with North America and Asia-Pacific being key areas.

Global SAF production was 26 million gallons in 2021, but is expected to reach over 1 billion gallons by the mid-decade with a potential federal tax credit boost.

Passenger traffic demand is expected to grow 3.6% annually over the next 20 years, driving the need for new, fuel-efficient aircraft.

Title:

Content: Dubai: Qatar Airways and Airbus have moved on from their dispute over the A350s and undertaken a repair project to get the planes back in the skies, according to a senior official with the European aircraft maker.

Mikail Houari, President of Airbus’ Africa and Middle East operations, stressed that the settlement was not an admission of liability for either party. He also projected short-term pressures to air traffic because of a bleak global GDP outlook.

IATA, in its December report, said international traffic in 2022 climbed 152.7 per cent vs 2021 and reached 62.2 per cent of 2019 levels. How do you see the trend holding up in 2023?

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Air traffic has been recovering continuously since travel restrictions were lifted, with a few notable exceptions. We expect short-term pressures from limited global GDP outlook, fluctuations in oil price and higher inflation, but these are likely to normalise within a few years. According to our latest forecast, demand for passenger traffic will grow annually by 3.6 per cent over the next 20 years.

According to your new annual report, gross commercial aircraft orders increased to 1,078 compared to 771 in 2021. Any projections for 2023?

Clearly, there is demand for Airbus products as demonstrated by the strong order book. While orders will remain strong, we can't expect every year to be a record one. The Airbus backlog stands at over 7,200 aircraft.

Assuming no additional disruptions to the world economy, air traffic and our ability to deliver products and services, our target is to achieve 720 commercial aircraft deliveries in 2023.

Airbus and Qatar Airways recently settled their dispute over the grounded A350 jets. How was this agreement reached?

Qatar Airways and Airbus are pleased to have reached an amicable and mutually agreeable settlement in relation to their legal dispute over A350 surface degradation and the grounding of A350 aircraft. A repair project is now underway and both parties look forward to getting these aircraft safely back in the air.

The details of the settlement are confidential and the parties will proceed to discontinue their legal claims. The settlement agreement is not an admission of liability for either party. This agreement will enable Qatar Airways and Airbus to move forward and work together as partners.

What kind of delays are you facing because of labour shortages affecting European countries right now?

We have moved from demand to supply pressures. The uncertainties along the supply chain are likely to continue for some time. But we also see that the overall supply chain challenges appear to be stabilising.

We maintain our assessment that the situation on the supply side will remain difficult in 2023. We have taken strong measures to deal with this additional complexity and to protect our ramp-up.

After 18 months of stability, our suppliers have transitioned from a full COVID-19 crisis mode to a ramp-up mode. This happens in a context of high prices, low stocks and re-hiring. We provided more visibility to suppliers than before - and this also gives us better visibility on their side for potential operational difficulties.

What’s next in the partnership with Etihad with respect to the A350?

Airbus’ Sustainability Engagement Program aims to investigate ways of improving aviation’s environmental performance, by providing a holistic view of short and long-term initiatives surrounding the Airbus fleet.

The Airbus A350 lies at the base of the ‘Sustainability50’ program, a partnership with Etihad, formed in 2021 to support the UAE’s road to achieving net zero emissions by 2050. The A350-1000 is setting new standards in air travel, with a 25 per cent reduction in fuel burn and emissions.

As part of our partnership with Etihad, we are working on exploring channels of cooperation in various areas such as sustainable aviation fuel, waste and weight management, and data driven analysis etc.

Are similar alliances in the works with other regional airlines such as Emirates?

Airbus is working towards the decarbonisation of aviation and is fully aligned with other industry actors. The journey to achieve Net Zero requires collaboration and investment and we are always open to opportunities and partnerships that have the potential to advance the decarbonisation of the aviation industry.

How much time do you anticipate it will take global airlines to fully transition to sustainable aviation fuel?

Over 100 million litres of SAF were produced in 2021 and according to IATA, more than 50 airlines around the world have experience with SAF. SAF can reduce emissions by up to 80 per cent on average during its full lifecycle.

The main challenge remains the emergence of a market to generalise the use of SAF. SAFs would have to be massively scaled up, and this could require investment anywhere from $10 billion to as much as $40 billion and upwards.

Currently, all Airbus commercial aircraft are capable of flying with an up to 50 per cent SAF blend mixed with kerosene and are targeted to be capable for 100 per cent SAF use in flight by the end of this decade.

Are all airlines, governments and fuel suppliers prepared for this transition?

This is a journey that all industry stakeholders have to collaborate on to achieve the desired outcome. There is a rising momentum in the aviation sector as governments and airlines align sustainability goals. We are already seeing governments and private sector undertake projects and announce initiatives to enhance sustainability (and) decarbonise the sector.

Which are the key markets that are specifically buying the A350?

We currently have 925 A350s on order from 54 customers. Qatar Airways is the largest operator of the A350, but we expect there to be ongoing demand for the aircraft as regional airlines move towards fleet modernisation and undertake carbon reduction initiatives.

The A350 family is a leader in sustainability fitted with the latest innovations that are redefining the future of flying. The A350 offers 25 per cent less fuel burn and CO2 emissions and 50 per cent less noise footprint compared to previous generation aircraft. Its versatility is evident with its flying range of up to 9,700nm/18,000 km.

What steps has Airbus taken to reduce its carbon footprint? Do you think it’s justified to target the aviation industry alone for carbon dioxide emissions?

We want to take a leadership position and are accelerating our own decarbonisation journey. We aim at reducing our industrial environment footprint at sites worldwide, developing a more circular model to optimise use of materials and reduce use of critical resources, and enhancing our product and services portfolio to positively contribute to climate change mitigation and adaptation.

We have the ambition to develop the world’s first zero-emission commercial aircraft by 2035 to ensure future generations can enjoy flying as much as we do. The aviation industry represents approximately 2.5 per cent of global human-induced CO2 emissions, surpassing the emissions contribution from many other industries.

We believe that aviation is not the problem but emissions are. Aviation will remain an essential mode of travel for the world, while being a crucial sector to many economies of the world in terms of its contribution to the gross domestic production.

Air India will acquire 250 Airbus aircraft. Over what duration will these planes be delivered?

The commitment includes 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body jets that will mark a new era for the country as the all-new, long-range aircraft celebrates its debut in the Indian market. Deliveries are set to commence with the first A350-900 arriving by late-2023.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

The Asia-Pacific region is the largest market for single-aisle aircraft, while Europe is the fastest-growing.

Title:

Content: Friday, 08 September 2023 05:25 GMT

Global Single-Aisle Aircraft Market Is Projected To Reach The Value Of $222.20 Billion By 2030 X Herald

(MENAFN- Ameliorate Digital Consultancy) According to the latest report by Virtue Market Research, in 2022, the Global Single-Aisle Aircraft Market was valued at USD 86.6 billion and is projected to reach a market size of USD 222.20 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 12.5%.

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A prominent long-term driver for the Single-Aisle Aircraft market is the growing global demand for air travel. Even though the COVID-19 pandemic had a severe impact on the aviation industry, the long-term trend remains robust. The demand for single-aisle aircraft is fueled by several factors, including the expansion of low-cost carriers, increasing urbanization, and rising middle-class populations in emerging economies.

The COVID-19 pandemic had an unprecedented impact on the aviation sector, leading to grounded fleets, reduced passenger demand, and financial strain on airlines. This setback prompted airlines to rethink their fleet strategies, with some deferring aircraft orders and retiring older aircraft to cut costs. Additionally, the pandemic accelerated the adoption of safety and hygiene measures in aircraft cabins, leading to increased investments in cabin air filtration and touchless technologies.

A notable short-term driver for the Single-Aisle Aircraft market is the rebound in domestic and regional air travel. As countries reopen their borders and vaccination efforts progress, there is a growing preference for shorter flights, leading to increased demand for single-aisle aircraft. Airlines are reactivating grounded aircraft and placing orders for new, fuel-efficient models to meet this surge in regional travel.

An exciting opportunity in the Single-Aisle Aircraft market is the development of next-generation, fuel-efficient aircraft. With a growing emphasis on sustainability and reducing carbon emissions, aircraft manufacturers are investing in research and development to create more eco-friendly models. This includes the use of advanced materials, aerodynamic improvements, and more efficient engines. Airlines that invest in these next-gen aircraft can not only reduce their environmental footprint but also benefit from lower operating costs in the long run.

One of the prominent trends observed in the Single-Aisle Aircraft industry is the rise of digitalization and connectivity. In-flight Wi-Fi, entertainment systems, and integrated passenger services are becoming standard features in modern single-aisle aircraft. Airlines are leveraging these trends to enhance the passenger experience and gain a competitive edge. Additionally, digitalization plays a crucial role in aircraft maintenance and operations, helping airlines optimize their fleet performance and reduce downtime.

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Segmentation Analysis:

The global Single-Aisle Aircraft Market segmentation includes:

By Type of Aircraft: Narrow-Body, Wide-Body, Regional Aircraft

Among these, the Narrow-Body aircraft category stands out as the largest segment. These aircraft are designed for short to medium-haul flights and are favored by airlines for their versatility and cost-efficiency. Narrow-Body aircraft are well-suited for both domestic and international routes, making them the preferred choice for many carriers.

In terms of growth, the Narrow-Body segment takes the lead yet again. The market for Narrow-Body aircraft is witnessing significant expansion due to the increasing demand for regional and domestic travel. Airlines are looking to replace older aircraft with more fuel-efficient and environmentally friendly Narrow-Body models, driving the growth of this segment.

By Engine Type: Turbofan, Turboprop

Among these categories, Turboprop engines are the largest segment. These engines are commonly found in regional aircraft that operate shorter routes and require a different set of performance characteristics compared to their Turbofan counterparts. Turboprop engines are known for their fuel efficiency and reliability, making them a preferred choice for regional carriers.

However, when it comes to growth, Turbofan engines take the lead. The demand for Turbofan-powered Single-Aisle Aircraft is on the rise, driven by the need for higher efficiency, reduced emissions, and greater operational range. Airlines are increasingly opting for Turbofan engines in their narrow-body aircraft to meet the growing demand for longer-haul regional and international flights.

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Regional Analysis:

The Single-Aisle Aircraft market spans across variregions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Each of these regions has its unique characteristics and influences on the market.

Asia-Pacific emerges as the largest region in this segment. This region encompasses numerfast-growing economies, a burgeoning middle class, and a robust travel and tourism industry. As a result, airlines in Asia-Pacific have been expanding their fleets to meet the increasing demand for air travel. With a foon domestic and regional routes, narrow-body aircraft have been particularly favored in this region, contributing to its leadership in the Single-Aisle Aircraft market.

In terms of growth, Europe takes the lead. Despite being a mature aviation market, Europe is experiencing a surge in demand for narrow-body aircraft, primarily due to the need for more fuel-efficient and environmentally friendly options. European airlines are increasingly looking to modernize their fleets with state-of-the-art single-aisle aircraft, thereby driving the growth of this segment in the region.

The Middle East & Africa region also shows promise in terms of growth, driven by the emergence of airlines in the Middle East as major global players. These airlines are expanding their networks and investing in modern, fuel-efficient narrow-body aircraft to meet the growing demand for long-haul travel.

North America, with its well-established aviation industry, continues to be a significant market for single-aisle aircraft. While it may not be the fastest-growing region, North America remains a stable and vital market for these aircraft, catering to both domestic and international routes.

South America, although a smaller market compared to the other regions, also contributes to the demand for single-aisle aircraft. Airlines in South America are focusing on modernizing their fleets to enhance operational efficiency and reduce emissions.

Latest Industry Developments:

  • One of the key strategies adopted by companies is a strong emphasis on fuel-efficient and environmentally friendly aircraft. With the aviation industry facing increasing pressure to reduce carbon emissions, manufacturers are investing in the development of next-generation single-aisle aircraft with improved fuel efficiency. This includes the use of advanced materials, aerodynamic design enhancements, and the incorporation of more fuel-efficient engines. Furthermore, there is a growing trend towards the electrification of aircraft systems, including electric taxiing systems and more electric aircraft architectures. These innovations aim to reduce the overall carbon footprint of single-aisle aircraft, aligning with global sustainability goals.
  • To enhance their market share, aircraft manufacturers are expanding their global reach and customer base. They are targeting emerging markets with fast-growing air travel demand, such as Asia-Pacific and the Middle East. These regions represent significant opportunities for fleet expansion, especially with narrow-body aircraft designed for short- to medium-haul routes. Another trend is fleet modernization. Airlines, particularly in mature markets like North America and Europe, are retiring older aircraft and replacing them with state-of-the-art single-aisle aircraft. This trend is driven by the need to improve operational efficiency, reduce maintenance costs, and enhance passenger comfort. Manufacturers that offer the latest technology and fuel-efficient options have a competitive advantage in this regard.
  • Connectivity and digital solutions are becoming increasingly important in the aviation industry. Airlines are seeking aircraft equipped with advanced connectivity options to enhance the passenger experience, provide in-flight entertainment, and enable seamless inteaccess. Manufacturers are responding by integrating cutting-edge connectivity solutions into their single-aisle aircraft offerings. Additionally, the use of data analytics and predictive maintenance has gained prominence. Airlines are leveraging data from their aircraft to optimize operations, reduce downtime, and lower maintenance costs. Aircraft manufacturers are incorporating these features into their products to meet the demand for data-driven solutions.

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The global single-aisle aircraft market is projected to reach $222.20 billion by 2030, growing at 12.5% from 2023-2030.

Airlines are prioritizing fuel-efficient aircraft, driving demand for new models, particularly in the narrow-body segment.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

Asia-Pacific, Europe, and North America account for 80% of global demand for fuel-efficient aircraft, with North America having the highest demand at 9,160 aircraft.

Title:

Content: China surging news reported on the 15th, the United States Boeing released the 2021 version of the "Civil Aviation Market Forecast" report on the 14th, noting that basically, the global market is recovering according to the company's 2020 expectations.
The recovery in domestic air travel demand is leading the trend, with the interregional market expected to recover with the relaxation of hygiene and travel restrictions, and eventually remote international travel will return to pre-pandemic levels in 2023-2024.
In the next 20 years, the demand for new aircraft will reach 43,610, the highest in the North American market is 9,160, and the demand in China is 8,700.
The report pointed out that the economic recovery has laid the foundation for a rebound in air passenger traffic, and the future prospects for air passenger traffic will remain stable.
Looking forward to 2025, GDP will increase by more than 15% compared to 2019, and GDP per capita will increase by about 10%.
The 21-year average passenger flow growth from 2019 to 2040 is expected to be 4%, in line with last year ’ s forecast, indicating that the basic global demand for air transport has not changed.
The report predicts that due to cyclical and structural market dynamics, the future air cargo market demand is strong, and full cargo aircraft is a significant growth area, including original cargo aircraft and modified cargo aircraft are forecast to increase from the previous year.
Thanks to the growth of e-commerce and the speed and reliability of air cargo, the world cargo fleet will increase from about 2,000 in 2019 to about 3,400, and the sustainable demand for air cargo will increase the global cargo fleet by more than 70% compared to the pre-pandemic size by 2040.
Notably, the report predicts that the world will need 19,000 civilian aircraft worth $3.2 trillion in the next 10 years, and demand for more than 43,500 new aircraft worth $7.2 trillion in the 20-year period to 2040, an increase of about 500 over the previous year ’ s forecast.
Among them, as of 2040, the demand for regional jets is 2,390, single-aisle aircraft 32,660, wide-body aircraft 7670, wide-body cargo aircraft 890, and aircraft demand totals 43,610.
The North American market has the highest demand, at 9,160, and the Chinese demand is 8,700.
This demand will lead to a 3.1% annual growth in the global active fleet, with the global civil aviation fleet set to surpass 49,000 by 2040, China, Europe, North America and Asia Pacific each accounting for 20% of new aircraft deliveries, with the remaining 20% going to emerging markets.
Traffic disruptions have a significant impact on aircraft deliveries and active fleets due to the pandemic. The report anticipates that the civil aviation industry will need more than 7,500 new wide-body aircraft by 2040 to meet fleet renewal and long-term growth in demand in the remote passenger and cargo market.
These demand increased slightly from the previous year, but decreased by 8% from 2019.
At present, single-aisle aircraft account for nearly 64% of the global passenger fleet, and single-aisle aircraft account for the largest proportion of new aircraft deliveries, roughly in line with pre-pandemic forecasts, accounting for 75%, and demand for more than 32,500 aircraft over the next 20 years.
The report notes that global demand for new single-aisle aircraft is driven by the size and flexibility of single-aisle aircraft.
In the future, these new single-aisle aircraft will continue to promote the development of low-cost airlines and provide the needed alternatives for older, less efficient aircraft.
The three regional markets for the new single-aisle aircraft are Asia Pacific, Europe and North America, which account for more than 80% of global low-cost airline capacity in 2019 and throughout the forecast period.
In addition, the report predicts long-term growth in the short-haul market, especially in emerging markets, and predicts that intra-regional short-haul travel accounts for more than half of the industry ’ s total growth demand, with inbound travel alone accounting for 17% of the industry ’ s new capacity.
Historically, excursions have been spurred by improved services, such as new direct routes and lower fares through low-cost airlines.
The report predicts that the share of Asian airlines in the global market will continue to increase, with China ’ s passenger share expected to grow from 15% in 19 years to 20% in 2040, and Asia Pacific ’ s passenger share expected to grow from 18% in 19 years to 21%.
# Growth # Planes # Forecasts # Future # Markets

Single-aisle aircraft account for 75% of new deliveries, driven by demand for 19,000 civilian aircraft worth $3.2 trillion over the next decade.

The global aerospace industry is shifting towards innovation and sustainability, with companies like Boeing and Airbus investing in research to reduce emissions and increase fuel efficiency.

Title:

Content: Arabian Travel Market focuses on innovation and sustainability in the aviation industry
T + T - normal size
Taking place from May 6 to 9 at the Dubai World Trade Centre (DWTC), ATM 2024 will host some of the world ’ s leading airlines and aircraft manufacturers to discuss the industry ’ s latest innovations and solutions, highlighting sustainability and the role of start-ups and innovators in taking the aviation industry to the next era.
With the theme ‘ Empowering Innovation: Transforming Travel through Entrepreneurship ’, ATM will support startups and innovators who are making a significant contribution to the travel and tourism industry. In line with this focus on innovation, ATM has partnered with AviationXLab and Intelaq, which have a shared mission to revolutionize the travel industry by providing an ideal platform for startups and innovators.
Founded in 2017, AviationX Lab is an aviation incubator that brings together global aviation leaders, Emirates, Thales Group, Collins Aerospace, GE Aerospace and Airbus, to reshape the future of the aviation industry through innovative and sustainable ideas. Intelaq ’ s programs include Intelaq Ideas Lab, Intelaq Incubator and Intelaq Accelerator, which supports startups and promotes the development of new ideas. Challenges in the travel, aviation and tourism sectors.
Airlines participating in this year ’ s show include Emirates, flydubai, Saudi Arabian Airlines, flynas, Qatar Airways and EgyptAir, which will debut at ATM 2024.
In addition, private jet companies MyFair Jets Group and Air Charter Services will also be present at the show, with Emirates becoming the first airline to operate a test flight of an Airbus A380, powered by 100% sustainable aviation fuel, and one of the latest fleets in the industry, investing in more environmentally efficient aircraft.
Sustainability
Adnan Kazim, Vice President and Chief Commercial Officer of Emirates Airline, said: “At Arabian Travel Market this year, Emirates is focusing on sustainability, with a greater focus on education, interaction and active engagement for visitors to our stand.
“As an airline, we are committed to reducing our carbon footprint and will showcase initiatives we have already implemented, such as incorporating sustainable materials on board, where visitors to ATM 2024 will be able to see how Emirates is embracing the sustainability ecosystem. ”
The four-day ATM conference program will feature presentations by global travel and tourism leaders, and will also highlight aviation innovation on May 7, when industry leaders from Cerium, Riyadh Air and IATA will gather on the global stage for a session titled “Looking to the Sky for Innovation: How Aviation is Changing ”.
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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is making efforts to improve aircraft efficiency.

It is working on adopting innovative strategies.

The major aircraft manufacturers are dominated by Airbus, Boeing, and Bombardier, with China emerging as a competitor.

Title:

Content:
Business Jet Market Share, Size, Trends, Segments And Forecast By 2024-32Business Jet Market

(MENAFN- IMARC Group) The latest report by IMARC Group, titled“ Business Jet Market : Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032 “, The global business jet market size reached US$ 19.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 27.0 Billion by 2032, exhibiting a growth rate (CAGR) of 3.8% during 2024-2032.

A business jet, also known as a private jet, is a specialized aircraft designed and manufactured for the specific needs of corporations, businesses, and affluent individuals. These jets are equipped with modern amenities, advanced technology, and luxurious interiors, ensuring a premium travel experience that emphasizes privacy, comfort, and efficiency. They offer flexibility in scheduling, enabling executives and professionals to adhere to tight schedules, attend multiple meetings in different cities within a single day, or respond rapidly to emerging opportunities or challenges. The global market for business jets caters to various industries, including finance, entertainment, government, and technology sectors. Business jets serve as a symbol of status, excellence, and innovation, reflecting the dynamism and ambition of the organization or individual that utilizes it. They also provide a secure and confidential environment for conducting business, fostering negotiations, and strengthening relationships. In recent years, there has been a growing trend toward customizing business jets to meet individual preferences and unique requirements, further adding to the allure and distinctiveness of this mode of transport.

For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/business-jet-market/requestsample

Business Jet Market Trends and Drivers:

The global business jet market is primarily driven by the rising demand for enhanced mobility, time efficiency, and personalized travel experiences among corporate executives and high-net-worth individuals. The continuous globalization of business and expansion of multinational corporations necessitates rapid and flexible transportation solutions, propelling market growth. Moreover, innovations in technology, design, and comfort features are attracting new customers, while the trend toward fractional ownership and leasing options is making business jet travel more accessible to a broader range of companies and individuals. Along with this, the growing awareness of the strategic advantages of business jet travel in terms of productivity, convenience, and competitive edge is fueling the market expansion. In addition, the emergence of eco-friendly business jet models, with improved fuel efficiency and reduced carbon emissions, aligns with the global push toward sustainability and responsible corporate citizenship. This, coupled with robust economic growth in emerging markets, regulatory support, and a shift toward more flexible and adaptive business practices, is supporting market growth. Furthermore, governments and regulatory bodies are increasingly facilitating the use of business jets by easing restrictions and streamlining certification processes, making it easier for companies to operate business jets. In line with this, the escalating demand for pre-owned business jets, as more companies and individuals seek cost-effective options for private air travel, is augmenting the market growth. Besides this, the incorporation of cutting-edge technologies such as advanced avionics systems, in-flight entertainment, and connectivity solutions is enhancing the appeal of business jets to tech-savvy customers and businesses looking to offer state-of-the-art travel experiences. Other factors, including the need for fast and efficient travel, the emergence of specialized services like maintenance, repair, and overhaul services, rising demand for long-range business jets, and evolving travel preferences toward private aviation, are also creating a positive market outlook.

Report Segmentation:

The report has segmented the market into the following categories:

Breakup by Type:

  • Light
  • Medium
  • Large

Breakup by Business Model:

  • On-Demand Service
    • Air Taxis
    • Branded Charters
    • Jet-Card Programs
  • Ownership
    • Fractional Ownership
    • Full Ownership

Breakup by Range:

  • < 3,000 NM
  • 3,000 – 5,000 NM
  • > 5000 NM

Breakup by Point of Sale:

  • OEM
  • Aftermarket

Market Breakup by Region:

  • North America (United States, Canada)
  • Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
  • Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
  • Latin America (Brazil, Mexico, Others)
  • Middle East and Africa

Competitive Landscape with Key Player:

  • Airbus
  • Bombardier Inc.
  • Dassault Aviation
  • Embraer S.A.
  • Gulfstream Aerospace
  • Honda Aircraft Company
  • Pilatus Aircraft
  • Piper Aircraft
  • Saab AB
  • Textron Inc.
  • The Boeing Company

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

About Us

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC's information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company's expertise.

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What is the position of China's COMAC in global aviation industry?

It will likely take 20 years for it to compete with Airbus or Boeing on a global scale, according to Willie Walsh, the IATA president.

The global sustainable aviation fuel market is expected to reach $2987.5 million by 2027, driven by regulations and demand, with North America being a key growth area.

Title:

Content: Global sustainable aviation fuel market size to reach USD 2987.5 million valuation by 2027

The latest business intelligence report on ‘global sustainable aviation fuel market’ presents an unbiased analysis of the industry augmentation history and forecast statistics for 2021-2027.

Pune, INDIA

Pune, India, Oct. 28, 2021 (GLOBE NEWSWIRE) -- According to credible sources, global sustainable aviation fuel market size was remunerated at USD 66 million in 2020 and is estimated to record a strong CAGR of 72.4% over 2021-2027, eventually reaching a valuation of USD 2987.5 million by the end of study period.

Proceeding further, the research literature studies the market from the perspective of fuel type, biofuel blending capacity, biofuel manufacturing technology, platform, and geographies to highlight the key areas for investment during the forecast period. Moreover, it explicates the competitive landscape on the basis of the strategies, financials, and recent developments of the leading players in this business sphere.

With increasing environmental awareness, the aviation sector is looking to reduce carbon footprints and lower GHG emissions, hence adopting alternative solutions like renewable jet fuels, hybrid-electric and all-electric aircraft, enhancing aero-engine efficiency through design adjustments, and many more.

Request Sample copy of this Report @ https://www.marketstudyreport.com/request-a-sample/4219606/

However, when compared to other solutions, adoption of sustainable aviation fuels like synthetic fuels, e-fuels, bio jet fuels, green jet fuels, and hydrogen fuels is one of the most practical alternative solutions when it comes to socio-economic benefits and contributes notably to mitigating current and future aviation environmental impacts.

Moreover, airlines across the aviation sector are extending their commercial fleets due to increase in air travel. These factors are majorly driving global sustainable aviation fuel market growth.

For instance, Gevo, Inc. and Trafigura Trading LLC, entered into a binding renewable hydrocarbon purchase and sale agreement in August 2020. Trafigura will be capable of providing SAF to both domestic as well as foreign clients, having rising demand for low-carbon jet fuel.

Geographical outlook

Analysts cite that North America is likely to serve as a lucrative growth avenue for the worldwide sustainable aviation fuel industry participants throughout the study period, as countries such as the U.S. and Canada, are focusing on various programs to use renewable aviation fuel to assist in reducing carbon footprints due to increased air traffic and flying passengers.

Commercial Aviation Alternative Fuel Initiative (CAAFI), Canada's Biojet Supply Chain Initiative, and Midwest Aviation Sustainable Biofuels Initiative (MASBI) are some of the sustainable aviation fuel efforts that are undertaken by countries including the U.S. and Canada.

Moreover, North American market is one of the robust demand areas for sustainable aviation fuel owing to supportive regulations and measures to reduce aviation emissions.

To access a sample copy or view this report in detail along with the table of contents, please click the link below:

https://www.marketstudyreport.com/reports/global-sustainable-aviation-fuel-market-size-research

Global Sustainable Aviation Fuel Market, by Fuel Type (Revenue, USD Million, 2018-2027)

  • Biofuel
  • Hydrogen Fuel
  • Power to Liquid Fuel

Global Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology (Revenue, USD Million, 2018-2027)

  • Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)
  • Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
  • Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
  • Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)
  • Alcohol to Jet SPK (ATJ-SPK)
  • Catalytic Hydrothermolysis Jet (CHJ)

Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity (Revenue, USD Million, 2018-2027)

  • Below 30%
  • 30% to 50%
  • Above 50%

Global Sustainable Aviation Fuel Market, by Platform (Revenue, USD Million, 2018-2027)

  • Commercial Aviation
  • Military Aviation
  • Business & General Aviation
  • Unmanned Aerial Vehicle

Global Sustainable Aviation Fuel Market, Regional Terrain (Revenue, USD Million, 2018-2027)

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia-Pacific

Latin America

  • Mexico
  • Brazil

North America

  • U.S.
  • Canada

Europe

  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe

Rest of the World

Global Sustainable Aviation Fuel Market, Competitive Dashboard (Revenue, USD Million, 2018-2027)

  • S.G. Preston Company
  • Red Rock Biofuels LLC
  • Aemetis Inc.
  • Velocys plc
  • Fulcrum BioEnergy Inc.
  • SkyNRG BV
  • World Energy LLC
  • Eni S.p.A.
  • Gevo Inc.
  • Neste Oyj

Table of Content:

Chapter 1. Executive Summary

1.1.         Market Snapshot

1.2.         Global & Segmental Market Estimates & Forecasts, 2019-2027 (USD Million)

1.2.1.     Sustainable Aviation Fuel Market, by Region, 2019-2027 (USD Million)

1.2.2.     Sustainable Aviation Fuel Market, by Fuel Type, 2019-2027 (USD Million)

1.2.3.     Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology, 2019-2027 (USD Million)

1.2.4.     Sustainable Aviation Fuel Market, by Biofuel Blending Capacity, 2019-2027 (USD Million)

1.2.5.     Sustainable Aviation Fuel Market, by Platform, 2019-2027 (USD Million)

1.3.         Key Trends

1.4.         Estimation Methodology

1.5.         Research Assumption

Chapter 2. Global Sustainable Aviation Fuel Market Definition and Scope

2.1.         Objective of the Study

2.2.         Market Definition & Scope

2.2.1.     Scope of the Study

2.2.2.     Industry Evolution

2.3.         Years Considered for the Study

2.4.         Currency Conversion Rates

Chapter 3. Global Sustainable Aviation Fuel Market Dynamics

3.1.         Sustainable Aviation Fuel Market Impact Analysis (2019-2027)

3.1.1.     Market Drivers

3.1.1.1. Rising need for reduction in GHG emissions in aviation industry

3.1.1.2. Growing air passenger traffic

3.1.1.3. High fuel efficiency of SAF

3.1.2.     Market Challenges

3.1.2.1. Price difference between SAF and conventional jet fuel

3.1.3.     Market Opportunities

3.1.3.1. Increasing demand for SAF by airlines over the world

3.1.3.2. Sustainable marine fuel

3.1.3.3. Government initiatives

Chapter 4. Global Sustainable Aviation Fuel Market Industry Analysis

4.1.         Porter's 5 Force Model

4.1.1.     Bargaining Power of Suppliers

4.1.2.     Bargaining Power of Buyers

4.1.3.     Threat of New Entrants

4.1.4.     Threat of Substitutes

4.1.5.     Competitive Rivalry

4.1.6.     Futuristic Approach to Porter's 5 Force Model (2018-2027)

4.2.         PEST Analysis

4.2.1.     Political

4.2.2.     Economical

4.2.3.     Social

4.2.4.     Technological

4.3.         Investment Adoption Model

4.4.         Analyst Recommendation & Conclusion

Chapter 5. Global Sustainable Aviation Fuel Market, by Fuel Type

5.1.         Market Snapshot

5.2.         Global Sustainable Aviation Fuel Market by Fuel Type, Performance - Potential Analysis

5.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Fuel Type 2018-2027 (USD Million)

5.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

5.4.1.     Biofuel

5.4.2.     Hydrogen Fuel

5.4.3.     Power to Liquid Fuel

Chapter 6.vGlobal Sustainable Aviation Fuel Market, by Biofuel Manufacturing Technology,

6.1.         Market Snapshot

6.2.         Global Sustainable Aviation Fuel Market by Biofuel Manufacturing Technology, Performance-Potential Analysis

6.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Manufacturing Technology, 2018-2027 (USD Million)

6.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

6.4.1.     Hydroprocessed Fatty Acid Esters and Fatty Acids - Synthetic Paraffinic Kerosene (HEFA-SPK)

6.4.2.     Fischer Tropsch Synthetic Paraffinic Kerosene (FT-SPK)

6.4.3.     Synthetic Iso-paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)

6.4.4.     Fischer Tropsch (FT) Synthetic Paraffinic Kerosene with Aromatics (FT-SPK/A)

6.4.5.     Alcohol to Jet SPK (ATJ-SPK)

6.4.6.     Catalytic Hydrothermolysis Jet (CHJ)

Chapter 7. Global Sustainable Aviation Fuel Market, by Biofuel Blending Capacity,

7.1.         Market Snapshot

7.2.         Global Sustainable Aviation Fuel Market by Biofuel Blending Capacity, Performance-Potential Analysis

7.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Biofuel Blending Capacity, 2018-2027 (USD Million)

7.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

7.4.1.     Below 30%

7.4.2.     30% to 50%

7.4.3.     Above 50%

Chapter 8. Global Sustainable Aviation Fuel Market, by Platform,

8.1.         Market Snapshot

8.2.         Global Sustainable Aviation Fuel Market by Platform, Performance-Potential Analysis

8.3.         Global Sustainable Aviation Fuel Market Estimates & Forecasts by Platform, 2018-2027 (USD Million)

8.4.         Sustainable Aviation Fuel Market, Sub Segment Analysis

8.4.1.     Commercial Aviation

8.4.2.     Military Aviation

8.4.3.     Business & General Aviation

8.4.4.     Unmanned Aerial Vehicle

Chapter 9.   Global Sustainable Aviation Fuel Market, Regional Analysis

Related Report:

Aviation Fuel Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026

Global Aviation Fuel Market is expected to exceed USD 325 billion by 2026. The rising construction and expansion of airports coupled with rising production and delivery of aircrafts are driving the market share. Latin America and Middle East & Africa will witness healthy growth in the aviation fuel market share owing to increasing tourism. Recovering economy in Latin America with cross border merger of the airliners will further fuel the industry demand. Steady growth in air traffic will positively influence the product penetration. Increasing demand of business jets in the MEA is the prime factor driving the regional growth. Few of the major players operating in the aviation fuel market include Shell, BP, Chevron, Gazprom, Reliance Petroleum, and IOCL among others. Industry players are entering into strategic agreements and partnerships for expanding their business share. For instance, in November 2019, BP signed a strategic technical services agreement with Sonangol for expanding its business in Angola.

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Contact Data

Airlines are demanding sustainable aviation fuel to reduce emissions, driving market growth, despite the price difference with conventional jet fuel being a challenge.

What is the main objective of the ReFuelEU Aviation initiative?

To increase demand and supply for sustainable aviation fuel

The aviation industry aims to reach zero carbon emissions by 2050, aided by sustainable fuel and driven by government restrictions on emissions.

Title:

Content: Doha World Air Transport Summit charts path to further recovery
Losses are expected to fall to just $9.7 billion this year.
Recommendations for greater collaboration between parties to achieve sustainability goals
Mustafa Talaat
9: 26 AM, Sunday, 25 Sep 22
“Sustainability, environmental conservation and the road to greater recovery. ”
Words summarizing the most important points discussed by the fourth edition of the International Air Transport Association (IATA) Global Finance Symposium, which was hosted in the Qatari capital Doha this year, with the participation of senior officials and aviation industry experts worldwide.
Al Mal attended the event, which is the largest in the industry since the outbreak of the Coronavirus epidemic at the end of 2019, in which more than 50 officials, experts and leaders representing all aspects participated and discussed the most prominent challenges and financial strategy to advance the future of the industry during the coming period.
The participants described the recent crises in the air transport sector as one of the biggest problems in its history, especially given the complexity of the situation with the outbreak of the Russo-Ukrainian war.
The World Air Transport Association estimated that the sector's losses by the end of this year alone amounted to $9.7 billion, a significant decline as a result of the lifting of travel restrictions, after witnessing a series of losses with the repercussions of the Coronavirus amounted to about $190 billion.
Participants said the sector is likely to return to profitability by 2023, but certainly at lower levels than before the pandemic, pointing out that the high level of corporate debt due to borrowing will remain the biggest challenge for financial managers, especially as companies commit to achieving their zero carbon targets by 2050, which will require greater investment in this aspect and pressure the financial resources of entities.
Participants stressed that the path to sustainability and achieving the industry ’ s goal of zero carbon emissions – Fly Net Zero – will require the cooperation of all stakeholders – airlines, financial managers, employees and government officials.
The seminar was held in the presence and patronage of the Minister of Transport, Jassim bin Saif Al-Sulaiti, and a number of officials. Wali Walsh, Director General of the International Air Transport Association (IATA), and Akbar Al-Baker, Chief Executive Officer of Qatar Airways, also participated in the opening session.
This was followed by dozens of dialogue sessions over the course of two days, in which the most prominent participants were: « Mohammed Bakri, Senior Vice President of Financial Settlement Services at the International Air Transport Association, and Mary Owens Thompson, Chief Economist at the Union ».
In addition to the participation of: Duncan Naismith, Chief Financial Officer of Qatar Airways, Teresa Parejo, Head of Sustainability at Iberia, Eric Soelheim, Chairman of the Financial Advisory Board for Industry, Chief Financial Officer of KLM, Caroline Dreschell, Head of Joint Responsibility at Lufthansa Group, and others.
Wally Walsh, director-general of the International Air Transport Association (IATA), said sustainability in the aviation sector was crucial, but it ran counter to the policy of taxing airlines for failing to commit to cutting carbon emissions.
Mr Walsh said: “Taxes are not particularly used to reduce carbon and therefore add nothing to the environment. ”
He believes that the benefits of preserving the environment are less than the risks of disruption of communication between the world through aviation, predicting that airlines will not see a hydrogen-powered aircraft before 2040 or 2050.
Numerous studies have shown that border closures have done nothing to protect citizens; for example, China ’ s zero-covid policy has lost its position as a global aviation hub.
He pointed out that the current high oil prices will certainly reflect on the prices of airline tickets, expecting companies to return to profitability rates in 2023.
Akbar Al Baker, Chief Executive Officer of Qatar Airways and Chairman of Qatar Tourism Authority, said: “The circumstances of the sector have made us meet more than once in a short time, not long ago we held a General Assembly meeting here in Doha to discuss resilience after the epidemic. ”
“Today, we are focusing on the future of the industry, companies and the entire planet as part of our mission to eliminate carbon emissions by 2050, and airlines around the world are taking serious steps to reduce these emissions. ”
The biggest challenge for the world ’ s aviation industry is political unrest, followed by inflation, fuel prices, employment and infrastructure in later stages.
He explained that the industry went through the Coronavirus pandemic as a major challenge before going through successive obstacles due to high oil prices and manpower shortages, as well as a decline in investment due to restrictions imposed on airlines due to a commitment to support the climate issue.
He pointed out that governments place restrictions on aviation, claiming that it is the main cause of carbon dioxide emissions, although it contributes only 3% of total carbon emissions.
He said that the market lacks human talent in managing the energy sustainability portfolio in the aviation sector, stressing that there is a large role for politicians to help the aviation sector with regard to the climate.
He explained that the oil companies have a great commitment in terms of the production of sustainable aviation fuel (known as SAF), pointing out that Qatar Airways will buy from it if provided at an appropriate price.
SAF fuel is three times more expensive than kerosene and is purchased as a sign of the airline ’ s commitment to mitigating environmental impacts.
Al-Baker stressed that hydrogen and hybrid electric propulsion still have many years to go, making increasing the production of sustainable aviation fuel even more important for the industry.
He said that investment decisions, especially in the field of sustainability, will have a significant impact on the financial affairs of companies in the short and long term and affect their future solvency.
He stressed the need to make huge investments in aircraft and new technologies, which have been hampered by financing in the field of sustainability and environmental solutions due to global regulations.
He said that the years following the coronavirus epidemic are the most successful in aviation history, pointing out that time is still dangerous and we do not know how things will develop as there is a possibility that tourism and travel will be affected by demand processes.
He pointed out that the performance of Qatar Airways was better than most companies, after it succeeded in intensifying its activity quickly and opened new destinations after the Coronavirus pandemic.
He explained that Hamad International Airport in Doha will open next October an expansion that will increase its capacity to 58 million passengers annually in conjunction with the World Cup, pointing out that there is a next phase to develop it to increase its capacity to 70 million passengers by the end of 2025.
Qatar Airways achieved record profits of $1.54 billion in the fiscal year 2021-2022 with total revenues of $14.4 billion, up 78% from the previous fiscal year, and up 2% from the fiscal year 2019-2020 before the Coronavirus pandemic.
Mohamed Al Bakri, Senior Vice President of the International Air Transport Association for Financial Settlement and Distribution Services, said that the real test for the sector is the lessons learned from the crises it has experienced over the past two years through the application of the collective action mechanism.
The industry has been closed for two years, but we have succeeded with hard work, commitment and determination to survive, he said, noting that the aviation sector was the only worldwide corridor for medicines, vaccines, and medical supplies in all countries.
He pointed out that learning from the mistakes of the two years is moving forward positively, and now we look forward to more support from policymakers and try to continue on the road to recovery, especially as the demand for travel continues.
He stressed that the new reality must focus on our customers and their needs, the customer is still the first choice for us, stressing the need to be financially flexible and companies stronger financially.
“We have to be financially able to continue to deliver the benefits and values we have shown because the world needs us, and aviation is no longer a luxury or an option but a necessity for human life. ”
The airline ’ s CFOs are working to rebuild balance sheets after the losses of the past two years by creating capital structures that support the ambitions of the plan to reach zero carbon emissions by 2050 and attract the necessary funding.
He stressed the need for continuous reporting on the environment, in addition to working on the digital transformation and transformation of the retail model of airlines and the impact of all this on the systems and capabilities of the financial departments of the sector.
Mary Owens Thompson, chief economist at the International Air Transport Association (IATA), said the recovery in the travel sector was supporting expectations of a return to 2019 levels by 2024.
Future bookings remain strong, with international bookings accelerating despite continued coronavirus travel restrictions in Asia, particularly in China.
Global gross domestic product (GDP) growth is expected to reach about 3 percent this year, half the growth achieved in 2021, and emerging economies will bear the brunt of the challenges this creates.
“Job growth should help mitigate the impact of rising inflation and interest rates. ”
It sees forecasts of a compound annual growth rate in the sector of 3.4% between 2019 and 2040.
Aviation is a necessary component of economic development and was recognized more than 75 years ago in an agreement signed in Chicago, she said.
Qatar Airways Chief Financial Officer Henk Jan Hogendoorn said geopolitical turmoil was the aviation industry ’ s overriding concern and that it had translated into an economic crisis after rising oil prices and rising inflation as consumers had less purchasing power.
Demand for travel is likely to continue to suffer, but there are still some residual effects of the epidemic as well, most notably the ongoing travel restrictions in certain parts of the world, especially with concern that these restrictions will increase with the advent of winter in the northern hemisphere.
Zoom and other forms of online meetings and conferences had little impact on the crisis, but what is becoming more apparent is the growing environmental awareness that is likely to continue as airlines and the industry as a whole will need to do more to educate the public about the environment.
He stressed that the rise in the value of the dollar will also have an impact on many airlines as they incur more costs, especially in fuel, and therefore the exchange rate has a negative impact on net income.
He predicted that costs will continue to rise, especially in the labor sector, which is poised for a sharp increase, not only because of the shortage of manpower but also because of regulations in force around the world.
He said there had been an increase in interest on investment funds in aviation, with good prospects for rising air freight revenues and a recovery in travel traffic.
Daniel Culver, market participation officer at Platts, an energy data provider, said: “With sustainable jet fuel as a key component of an airline ’ s cost base, hedging will be vital to avoid negative impacts from these companies appearing on their balance sheets.
He pointed out that airlines hedge to secure their profit margins and protect against losses, making financial planning more accurate and difficult.
He added that the difference between the price of crude oil and jet fuel is expected to remain high throughout 2023, after reaching record levels during the epidemic period as producers changed levels of jet fuel production during those periods.

NASA and partners, including Boeing, are investing in the development of a low-emission aircraft, with NASA contributing $425 million.

Title:

Content: Next Generation of Low-Emission Passenger Aircraft Planned for 2028 Test Flight
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The National Aeronautics and Space Administration (NASA) announced Wednesday (January 18) that it will work with Boeing to develop a next-generation aircraft with a significantly increased fuel efficiency, with the goal of reducing fuel consumption by 30%, with the new aircraft scheduled for test flight in 2028.
NASA said that in order to meet the Biden administration ’ s commitment to reducing aviation emissions, it will provide Boeing with $425 million (about S $563 million) over seven years for the Sustainable Flight Demonstrator program to “build, test and fly a full-size demonstrator to validate technologies aimed at reducing emissions. ”
Boeing and its partners will provide the rest of the approximately $725 million agreement.
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What does NASA want to do with Boeing in aviation industy?

It wants to build, test, and fly a single-aisle aircraft to reduce emissions before the end of the decade.

The market dynamics for sustainable aviation fuel vary by region, with North America and Asia-Pacific being key areas.

Global SAF production was 26 million gallons in 2021, but is expected to reach over 1 billion gallons by the mid-decade with a potential federal tax credit boost.

Title:

Content: Skift Take

President Biden backs incentives for sustainable aviation fuel as the airline industry looks to cut emissions. But legislation remains stuck on Capitol Hill with little clarity on how it will become law.

President Joseph Biden renewed calls this week for a Sustainable Aviation Fuel, or SAF, tax credit, in a strong endorsement for the airline industry’s goal to slash carbon emissions.

“We’re on the cusp of so many significant things that are going to happen in this country — not just in the fuel side, but in the next 10 years,” said Biden. “Your children are going to see more change in the next 10 years than we’ve seen in the last 40 years. That’s how rapidly technology is changing.”

The question, at least for aviation, is whether SAF will takeoff in the next decade as the president hopes. The sector has a disappointing history of big promises and missed targets. For example, United Airlines first invested in Fulcrum Bioenergy in 2015 with a 10-year SAF supply commitment that was due to begin in 2017. Fulcrum completed its first plant in 2021 but has yet to begin supplying the airline.

A SAF demonstration flight that United flew to Washington’s Reagan National Airport in December used fuels produced by World Energy, another SAF supplier.

Industry trade group the International Air Transport Association (IATA) has estimated that global SAF production was 26 million gallons in 2021. A seemingly sizable number but a fraction of 1 percent of pre-pandemic global jet fuel demand.

European airlines are also mounting pressure on their governments to back SAF production. Luis Gallego, CEO of British Airways and Iberia-parent International Airlines Group (IAG), said at the end of March that 30 SAF plants could be built across Europe by the end of the decade with “the right policy in place.” SAF could make up as much as 5 percent of global aviation fuel supplies by 2030 with support, he added.

And in South America, Latam Airlines Group CEO Roberto Alvo recently called on government and private industry to “collaborate, play their role and lead the energy transition” to make the continent a leader in SAF production.

Savanthi Syth, an aviation analyst at Raymond James, estimated last June that — barring additional government support — the globe was only on track to produce just 1 billion gallons of SAF annually by the second half of the decade. A big increase from current levels but still just 1 percent of aviation fuel use.

“You are seeing some encouraging changes in the UK, and a change in U.S. policy in terms of production incentives [that] will go a long way,” she said Thursday. A federal tax credit or other incentives could boost SAF production above the 1 billion gallons forecast, Syth added.

The airline industry has coalesced around SAF to cut emissions. The fuels are seen as the quickest and most effective near-term solution to significantly reduce the use of fossil fuels. The technology exists to create sustainable fuels, which can be derived from a number of feedstocks including wood chips, switchgrass, and municipal solid waste, but significant capital is needed to scale up production. These fuels must meet full-lifecycle sustainability metrics, for example they cannot be overly water intensive or use feedstocks that compete with food production.

Other methods of decarbonizing aviation, including renewing airline fleets with more gas-sipping jets and buying carbon offsets, are viewed as limited. Offsets, for example, face criticism over whether they actually result in the carbon savings promised. And electric aircraft, which have a big backing in Silicon Valley, are not expected to reach a level of technology maturation to materially reduce aviation emissions for at least a decade if not more.

How President Biden’s call for a SAF tax credit becomes law is the question du jure in Washington, D.C. Last year, Representative Brad Schneider (D-Ill.) introduced the Sustainable Skies Act that provide an up to $2 per gallon tax credit for sustainable fuels. The legislation remains pending despite bipartisan support from at least 70 other representatives. Though, in typical Capitol Hill fashion, the proposal could be tacked onto a larger budget or other bill.

“If the U.S. is serious about this shift for airlines from fossil fuels to net zero carbon emissions by 2050, this is a must have not a nice to have,” Cowen & Co. analyst Helane Becker said.

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Tags: carbon emissions, International Airlines Group, latam, sustainability, united airlines

Photo credit: United Airlines is one of the largest users of sustainable aviation fuel in the U.S. Edward Russell / Flickr