FOR AIRLINES Aviation is a strategic pillar of the UK economy, contributing around £160 billion to GDP (about 4–5% of national output) and supporting roughly 1.6 million jobs through direct, indirect and tourism-related activity. It underpins UK trade, investment and regional growth by connecting businesses and tourists worldwide, supporting high-value exports and sustaining jobs in sectors from manufacturing and aerospace to hospitality and retail.
The airline industry is moving rapidly to incorporate sustainable aviation fuel (SAF) as a core part of its decarbonisation strategy, and airlines operating to and from the UK are at the sharp end of this transition because of an emerging web of UK and EU mandates. For airlines, this is not just an environmental story, it directly affects fuel cost, capital allocation, and long-term competitiveness.
WHY SAF IS RISING UP THE AGENDA SAF is a drop-in fuel that can be blended with conventional jet and used in existing aircraft and fuel infrastructure, delivering significant lifecycle CO₂ equivalent reductions compared to fossil kerosene. It is one of the few scalable options likely available this decade to cut emissions from medium and long haul flying where battery electric solutions are not viable.
Regulation has turned SAF from a voluntary initiative into an obligation. The UK Government’s SAF Mandate requires SAF to make up at least 2% (assuming a 70% GHG reduction % versus a fossil comparator of 89 gCO2e/MJ) of total UK jet fuel volumetric demand from 2025, rising on a linear trajectory to 10% in 2030 and 22% in 2040, remaining at 22% thereafter pending review. In parallel, the EU’s ReFuelEU Aviation regime imposes its own SAF percentages at EU airports, creating overlapping compliance requirements for most European carriers.
These mandates sit alongside airlines’ own net zero targets and growing pressure from investors and corporate customers to address Scope 3 emissions from flying. The result is a structural, policy backed demand signal for SAF that is reshaping strategic planning across the sector.
HOW AIRLINES ARE EMBRACING SAF
Long-term offtake deals and partnerships International Airlines Group (IAG), parent of British Airways, has committed to power 10% of all its airline’s flights with SAF by 2030, equivalent to around one million tonnes of SAF per year. IAG has already signed multiple offtake deals, including with projects such as Infinium, Twelve and LanzaJet in the US, to secure long-term supply. In 2023, IAG’s airlines used about 12% of the world’s total supply of SAF, and the group states it has secured roughly one-third of the SAF it needs to meet its 2030 goal.
British Airways continues to sign new multi-year agreements, such as its deal with EcoCeres to receive SAF from waste-based biomass feedstock, expected to avoid around 400,000 tonnes of lifecycle CO₂ emissions. These arrangements typically combine physical volumes with associated emissions reduction claims, which are important for ESG reporting and corporate customer engagement.
18 | ADMISI - The Ghost In The Machine | Q1 Edition 2026
SUSTAINABLE AVIATION FUEL AND WHAT IT MEANS
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