Flights for Luxembourgers could become more expensive
Marc Serota, Unsplash
On 1 January 2025, EU Regulation 2023/2405 will come into force, mandating the use of sustainable aviation fuel (SAF). This is part of the ReFuelEU Aviation initiative developed as part of the European Union's Green Deal.
Key points:
- The mandatory SAF share in aviation fuel is 2 per cent.
- The rules apply to all fuel suppliers and flights from EU airports, including flights by airlines from third countries.
The cost of SAF at Findel Airport (Luxembourg) is 5-6 times higher than regular Jet A1 paraffin. This will lead to:
- Increasing costs for airlines, which can only partially pass the costs on to customers.
- Increase in the price of passenger and freight transport.
Cargolux and Luxair confirm that the additional costs will have a significant impact on the cost of flights.
SAF and HVO100 (green diesel) are made from similar raw materials. Increased demand for SAF may increase the cost of biofuels for road transport. However, Luxembourg is emphasising electrification of land transport, giving priority to SAF for aviation.
The Luxembourg government plans to actively monitor the implementation of the regulation. Since 2023, representatives of the country have been participating in the Expert Group for Sustainable Aviation, which analyses the results of implementation.
An assessment of the impact of the regulation on the EU internal aviation market and the competitiveness of companies will be published by 1 January 2027. It may influence the adjustment of the minimum requirements, the level of fines and other aspects.
The introduction of SAF in aviation is an important step towards decarbonisation, but comes with economic challenges. Luxembourg supports the regulation, emphasising the need to take into account the interests of airlines and consumers in order to avoid a significant increase in the cost of air travel.
