Aviation: Alternative Fuels

(asked on 1st July 2026) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, pursuant to the answer of 26 June 2026 to Question 11220 on Aviation: Alternative Fuels, what assumptions were made in the Sustainable Aviation Fuel Mandate cost-benefit analysis on the proportion of increased ticket prices that would be passed through by airlines to consumers; and what estimate her Department has made of the average increase in the price of (a) a short-haul, (b) a medium-haul and (c) a long-haul return ticket attributable to the Sustainable Aviation Fuel Mandate in each year to 2040.


Answered by
Keir Mather Portrait
Keir Mather
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 10th July 2026

The Sustainable Aviation Fuel (SAF) Mandate cost-benefit analysis set out the estimates of the impact on an average one-way ticket price (Sustainable aviation fuel mandate: final stage cost benefit analysis). This analysis assumes that airlines pass on 75% of the additional costs of the SAF Mandate onto consumers. The year-on-year costs for different ticket-types was not part of the cost-benefit analysis, as this will be dependent on how individual airlines choose to distribute additional costs.

Eligibility criteria for the Low Carbon Fuels Fund will be provided in the guidance for applicants, which will be released upon the launch of the competition this summer. In the previous Advanced Fuels Fund competition, eligibility criteria included the categories of main fuel output, technology readiness level, feedstocks, greenhouse gas emissions, location, project lead and grant offer terms and conditions.

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