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Sustainable Aviation Fuel Shortage Exposes Airline Industry Vulnerability

Wall Street Journal US Business •
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Airlines that spent years touting sustainable aviation fuel as the future are now discovering there isn't enough to meet demand as energy prices surge. The fuel, made from used cooking oil, cover crops and captured carbon dioxide, accounts for only a small fraction of the kerosene powering today's flights.

Carriers face mounting pressure from soaring fuel costs that are pushing operations to their limits. When the war in Iran disrupted global oil markets, airlines found themselves paying premium prices to secure the barrels needed to keep aircraft flying. Sustainable alternatives that could have provided relief remain in critically short supply.

Despite years of industry promises about SAF as a pathway to lower-carbon flying, production has failed to scale meaningfully. Airlines have struggled to transition from conventional jet fuel, leaving them exposed to volatile energy markets while climate commitments gather dust.

The gap between sustainability rhetoric and reality reveals a fundamental weakness in airline energy strategy. Without adequate alternative supplies, carriers remain locked into expensive petroleum dependence regardless of public commitments to greener operations.