IATA: SAF pricing remains closely linked to conventional aviation fuel

IATA Economics stated (23-Oct-2026) a more developed sustainable aviation fuel (SAF) industry "could diversify airlines' exposure away from conventional oil market risks, strengthening fuel supply resilience and energy security". However, the association reported that SAF prices remain closely linked to conventional aviation fuel prices, due mainly to "the limited maturity and liquidity of SAF markets". IATA stated: "Greater liquidity will be critical for SAF prices to better reflect their own market fundamentals and become less reliant on conventional jet fuel benchmarks. Strong and stable policy support can help scale supply and demand, including measures to improve project bankability and address the SAF-conventional fuel cost gap. As traded volumes grow and the market matures, SAF pricing benchmarks should increasingly reflect key input costs and SAF-specific supply-demand fundamentals". [more - original PR]