Asia's Airlines Face Rising Fuel Costs as Pressure Grows to Adopt Costlier Sustainable Aviation Fuel
Why It MattersPersistently high fuel costs, combined with pressure to adopt pricier sustainable aviation fuel, squeeze Asian carriers' margins and make passenger fuel surcharges a recurring tool across the region.
Asia-based airlines are contending with persistently high fuel costs while pressure builds on them to speed up their shift to more expensive sustainable aviation fuel (SAF), according to an opinion piece by Singapore-based writer and editor Tom King.
Singapore Airlines Group reported a 78.5 per cent surge in net fuel costs in the quarter to June, contributing to a net loss of S$76 million (US$59.3 million) despite record revenue. Cathay Pacific has repeatedly adjusted passenger fuel surcharges as jet fuel prices fluctuated, and India's low-cost carrier IndiGo introduced another round of fuel-related charges.
