A SAF premium of 2-3x and a blend of 10% SAF would see the price of a ticket increase by ~3-6%. Overview of jet fuel and SAF prices in Europe, including price premium FIGURE 9 01 October 2023 01 September 2023 01 November 202301 October 2024 01 January 2024 01 February 202401 May 2024 01 April 2024 01 June 2024 01 July 2024 01 September 202401 August 2024 01 March 2024 01 December 2023 01 November 2024 01 December 202401 January 2025 01 February 2025 Jet fuel ($/tonne) SAF premium ($/tonne) SAF ($/tonne)500100015002000250030003500 0$/tonne Notes: 1. All prices are quoted as CIF (cost, insurance and freight price, i.e. the price of a good at the border including insurance but before duties); based on north-west Europe (NWE) prices. 2. The bottom line is the cost of jet fuel; the middle line is the premium payable for SAF; the sum of these two = the top line, which is the cost of SAF in NW Europe. Source: S&P Global Commodity Insights (formerly Platts). 28 Financing Sustainable Aviation FuelsOne of the challenges associated with offtakes often mentioned by industry is price. Today’s SAF premium is posing a challenge to voluntary adoption and could potentially drive demand for air tickets down, especially in emerging markets where the sector is now growing, SAF mandates are not in place and competition between airlines is high. It may also drive opposition to higher mandated blends that governments could introduce to stimulate the market. Since regulations change frequently, airlines’ decisions to offtake more SAF compared to conventional jet fuel will be driven by price competitiveness. Based on SAF market prices between 2023 and 2024, SAF remained two to three times more expensive than conventional jet fuel (see Figure 9). Assuming fuel represents a quarter to a third of the ticket price,15 a SAF premium of 2-3x and a blend of 10% SAF would see the price of a ticket increase by ~3-6%. The more this gap can close over time, the more likely voluntary demand will grow. Nevertheless, some airlines have already accepted and passed on this price premium and actively use and offtake SAF.

Financing Sustainable Aviation Fuels 2025