Airlines for Europe ‘deeply concerned’ ReFuelEU legislation failing to create affordable SAF market as promised

The CEOs of 17 of Europe’s leading airline groups are asking policymakers in Brussels and member states to urgently commit to policy choices that protect the competitiveness of Europe’s airlines and keep air travel accessible for all Europeans. 

A new report by Steer Economics, to be published by Airlines for Europe (A4E), will show that costs for A4E airlines associated with legislative and similar regulatory measures have tripled over the past decade to the tune of 15-billion euros (USD$16.2 billion) in 2024—a sum that could have funded 300 next-generation, fuel-efficient aircraft.  

A4E said without urgent action now, this could double to 27.5-billion euros (USD$29.8 billion) in 2030—a direct consequence of what the association said is an incomplete EU single market, inefficient airspace management and escalating sustainability-related levies. 

“These costs have a direct impact on Europe’s economy,” A4E stated. “Studies show that every 10 percent increase in air connectivity translates to a 0.5 percent boost in GDP per capita and a 1.6 percent increase in jobs. Despite this, policy in Europe is generating an ever-increasing cost burden that is harming Europe’s ability to connect people and compete globally, as well as its attractiveness as a place to do business.” 

In response to these risks, and speaking at the A4E Summit in Brussels where they met with Apostolos Tzitzikostas, the commissioner for sustainable transport and tourism, the CEOs listed measures critical for the competitiveness of the sector: 

• Manage airlines’ transition to net zero—reviewing Fit for 55 to: 

  
  
  
  

  • Bring the cost of sustainable aviation fuel (SAF) down in the forthcoming Sustainable Transport Investment Plan.  

  
  
  
  

  • Address the climate effects from aviation at a global level through a stronger CORSIA and promote an equal price of carbon emissions for all carriers.  

• Ensure any reform of EU261 passenger rights leads to a clear, fair and balanced regulation for passengers and airlines, reflects operational realties and is cost neutral.

  
  

• Avoid additional aviation taxes becoming the default position for national governments. 

• Member-state governments should hold air navigation service providers (ANSPs) accountable for their performance this summer and urgently address airspace reform to reduce delays and carbon emissions. 

“Competitiveness is the word on everyone’s lips in Brussels and today our CEOs have set out what that means for Europe’s airlines,” said Ourania Georgoutsakou, A4E’s managing director. “The simple fact is that Europe is becoming too expensive to do business and as a result passengers are switching to non-EU destinations, hubs and carriers. Flying is and will remain an essential element of how we in Europe remain connected to each other and to the world. It is critical to European integration and economic growth. The time for talking is over. Now is the time for decisive action and reform.”  

The summit also saw Benjamin Smith, CEO of Air France-KLM, assume the chairmanship of A4E. 

Speaking as he took the helm for the next 12 months from Ryanair’s Michael O’Leary, he said, “The aviation industry is determined to work with policymakers in order to come up with concrete solutions to increase the competitiveness of European airlines, create a level playing field with non-EU competitors and decarbonize our sector. These are all intertwined challenges, key to Europe’s sovereignty, that must be addressed collectively. Neglecting even one aspect will undermine the success of the others.” 

A4E also asserted that it remains fully committed to decarbonizing aviation, cutting emissions and reaching net zero by 2050.  

“Abundant and affordable SAF is critical in order to reach this goal,” it said. “However, we are deeply concerned that the ReFuel legislation is failing to create the affordable SAF market it promised. The Boston Consulting Group report published today forecasts a shortfall of up to 45 percent in eSAF and 30 percent in biofuel supply by 2030. The European Commission and member states must now take responsibility—fuel suppliers are not delivering. Without urgent action in the coming months, the credibility of the mandate will be severely undermined—and a reassessment of the mandates will be needed.”