Virgin Atlantic CEO Warns SAF Mandates Outpace Supply
Virgin Atlantic CEO Corneel Koster said at the Skift Global Forum that rising sustainable aviation fuel (SAF) mandates in the U.K. are not tenable while supply remains scarce. He argued that airlines cannot keep passing higher costs to customers without delivering the intended environmental benefits. Koster called for more progress in scaling SAF production to meet regulatory requirements.
The U.K. introduced its SAF mandate last year, initially requiring the fuel to represent 2% of national jet fuel demand, with a trajectory toward 22% in the years ahead. Koster's remarks at the Skift Global Forum highlighted a widening gap between those regulatory targets and actual production capacity, which continues to face severe supply chain bottlenecks. He emphasized that airlines are being pushed to absorb or pass along rising fuel costs even as the promised emissions reductions remain unrealized at scale. The tension between policy timelines and industrial reality is becoming a central issue for carriers operating in the U.K. market.
This dispute could affect travelers through higher ticket prices if airlines transfer SAF compliance costs to customers, potentially making air travel less accessible for budget-conscious consumers. It may also slow the aviation industry's decarbonization progress if regulatory pressure outpaces technological and manufacturing capabilities. Communities near airports and environmental groups could see delayed emissions reductions, while investors may grow cautious about airline profitability. The outcome could shape how other nations design their own fuel mandates, influencing global airfare trends and the pace of clean aviation technology development.