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Market Chatter: Europe Widens Lead Over US, Asia in Shift to Cleaner Jet Fuel

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European airlines outpaced their US and Asian counterparts in sustainable aviation fuel adoption last year, bolstered by regional blending mandates, according to a Bloomberg report on Thursday.

British Airways parent IAG led major passenger carriers with SAF accounting for 3.3% of its total jet fuel consumption. Air France-KLM followed at 2.9%, while Ryanair Holdings reported 2.0%. By contrast, US carriers lagged behind, hovering between 0.3% and 1%.

The surge in Europe was driven by UK and EU mandates introduced in 2025 that require 2% of jet fuel to be sourced from SAF. The UK obligation increases to 3.6% this year.

IAG, which also owns Aer Lingus and Iberia, purchased over 99 million gallons of SAF, outpacing the about 97 million gallons consumed collectively by major US carriers.

Despite Europe's gains, the broader global transition remains sluggish. Worldwide SAF consumption doubled last year but accounted for just 0.6% of total jet fuel use. The International Air Transport Association projects that share to edge up to 0.8% this year as growth decelerates.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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