Brazilian airlines estimate that air ticket prices may increase with the implementation of SAF (Sustainable Aviation Fuel) in their operations from 2027. The fuel is more expensive than traditional aviation kerosene.
of the greenhouse effect on domestic flights through the use of sustainable aviation fuel from 2027 onwards. The targets start with a 1% reduction and gradually grow until reaching 10% in 2037.
Gol’s CCO director, Eduardo Calderon, said that aviation kerosene currently represents 40% of the airline’s operating costs. According to the executive, the company must strictly comply with the Future Fuel Law, reducing its emissions by 1% from 2027.
“Today, SAF costs two to three times the value of aviation kerosene. Imagine something that already represents 40% of our costs, and on top of that you are adding an increase of two to three times. It’s very impactful. There is still a lot of discussion with the government about how we can do to mitigate this impact”, he said in an interview with CNN.
Currently, there is no production of sustainable aviation fuel on a commercial scale by any Brazilian company.
“There is no way for airlines to absorb such a high cost increase. This ends up being passed on to the tariff in some way. This is a discussion that will have to exist over the next few years to see what is the best way to carry out this implementation from 2027 onwards”, stated Calderon.
According to Latam Brasil’s Sustainability and Social Impact Manager, Raquel Argentino, the value of SAF is one of the main challenges for the decarbonization of the airline sector.
The airline wants to incorporate 5% sustainable aviation fuel into its operations by 2030, giving preference to production in South America.
For the Latam manager, it is necessary to consider the adoption of alternative means for decarbonizing the sector, given the initial stage of development of SAF production in Latin America.
According to Raquel Argentino, Brazil has potential for developing the fuel, but more public policies are still needed to stimulate its production.
“Specifically regarding fuel, Latam has given clear signals to the market and authorities that obtaining quality SAF must overcome the challenges of limited availability and high costs,” said the CNN.
The transfer of the SAF value to airline tickets is also a concern for Azul. According to Filipe Alvarez, the airline’s Sustainability Manager, the company is talking to the federal government about the possibility of implementing tax incentives to relieve the fuel production chain.
“We are discussing with the ANP, Anac, Ministry of Mines and Energy, Ministry of Finance so that the final price of the SAF reaches an acceptable and feasible level for Brazilian airlines so that there is no transfer and increase in ticket costs ”, he told CNN.
Azul estimates that it will use around 25 million liters of SAF in its fleet in 2027, with proportional growth of 25 million in subsequent years.
To achieve the goals established by the Future Fuel Law, the company does not rule out importing the fuel if there is not enough production in Brazil, which could make the cost even higher.
“We are all responsible and we all need to work together. But it is not fair that the Brazilian and Latin American population has to pay a higher price for tickets, while we, as a continent, are not the main emitters”, stated Filipe.
In a note, the Ministry of Mines and Energy (MME) informed that the definition of incentives for the production of sustainable aviation fuel in Brazil is part of a broad discussion on the regulation of the sector in the coming years.
