By Joanna Plucinska LONDON (Reuters) -Chief executives of Europe’s airlines called for more European Union support to increase the supply of green jet fuel and improve subsidies for its creation. The EU began requiring airlines to use more sustainable aviation fuel this year, with a 2% minimum blending mandate set to rise to 6% by […]
Business
Europe’s airline CEOs call for more support meeting green goals
Audio By Carbonatix
By Joanna Plucinska
LONDON (Reuters) -Chief executives of Europe’s airlines called for more European Union support to increase the supply of green jet fuel and improve subsidies for its creation.
The EU began requiring airlines to use more sustainable aviation fuel this year, with a 2% minimum blending mandate set to rise to 6% by 2030.
“We have mandates but we don’t have sustainable aviation fuel,” said Luis Gallego, CEO of IAG, at a press conference for trade group Airlines for Europe on Tuesday.
The group includes the CEOs of Ryanair, easyJet, Air France-KLM, Lufthansa and British Airways-owner IAG.
The CEOs said they wanted more help from the European Commission in creating a functioning SAF market as well as higher subsidies to encourage the production of the fuel.
As it stands, SAF costs three to five times more than traditional jet fuel.
“If SAF was the same price as jet fuel, we wouldn’t need mandates,” said easyJet CEO Kenton Jarvis.
Airline trade group IATA’s director Willie Walsh earlier accused the oil industry of inflating the costs for airlines through SAF surcharges.
(Reporting by Joanna Plucinska; Editing by Kirsten Donovan)