Sustainable Aviation Fuels, Global Air Connectivity and Business Confidence Survey

Sustainable Aviation Fuels (SAF) work. Reducing carbon emissions up to 80%, they are a proven drop-in technology and certified for 50% blends in engines. With 100% carbon reduction and 100% certification on the way, the future from a technology perspective looks bright.

But there are challenges. SAF are more expensive than Jet A1 and supply is limited.

"The first thing governments should do is create supporting policies to increase SAF production.” - said Marie Owens Thomsen, SVP, Sustainability and Chief Economist, IATA.

Countries that have signed the Paris Agreement are still subsidizing an overwhelming number of products and services that are based on fossil fuel. And while some €50 billion is spent in this area annually in the EU, this doesn't necessarily happen for individual countries.

“To date most countries don’t incentivize SAF production,” says Thomsen. “It means that refineries that could produce SAF aren’t doing so. As we see more renewable fuel production capacity coming online, that doesn’t necessarily mean that SAF will be produced.”

Read how governments opt for mandating the use of SAF despite the current supply problem as well as other complexities surrounding SAF through an #airlines article: 👉 https://bit.ly/3o7zOZA

Read IATAs policy paper to understand the pivotal role that government policies must play to encourage the scaling up of SAF production https://bit.ly/45liCR4

#sustainableaviationfuel #SAF #FlyNetZero

The Recovery is Underway for Global Air Connectivity

💹 By March 2023, IATA’s Global Air Connectivity Index which measures connectivity as scheduled passenger capacity weighed by the relative economic scale of destinations served, had recovered to:

• 79.4% of pre-pandemic levels for international connectivity
• 95.8% for domestic connectivity

💹 The number of domestic #airport pairs served has exceeded the 2019 levels by 4.5%. Similarly, international airport pairs are being restored and are at 90% of pre#covid19 levels.

However, the recovery in international flight frequency, is still behind at 89.6% of pre-pandemic levels.

💹 The recovery in connectivity is broad-based across regions, with #africa being the strongest performer.

International air connectivity in Africa has exceeded its 2019 level, reaching 104% in March 2023. #latinamericacaribbean and the #middleeast are approaching at 97% and 98%, respectively, while for both #europe and #northamerica, international connectivity is at 87% of the 2019 level. #asiapacific continues to lag the recovery in the other regions, at 62% of 2019 levels, which is expected to improve given the recent re-opening of key markets.

More details available on IATA's Quarterly Air Transport Chartbook 👇https://bit.ly/3OCTKy8

#aviation #transport #markets

Upcoming Webinars

✈ Taking a Closer Look: Standard Ground Handling Agreement - 30 May at 14:00h CEST

✈ Fourth joint IATA–UPU webinar: Stakeholders’ compliance and readiness for mail transport under PLACI regimes - 30 May at 13:00 CEST

✈ Insights on Aviation Cybersecurity - 1 June at 14:00h CEST

Passenger confidence exceeds cargo

The latest IATA Business Confidence Survey, which asks #airline executives to share their near-term expectations for the industry, points to a positive outlook for both passenger traffic in particular, and also for #cargo volumes over the year ahead.

Specifically, 86% of respondents expect passenger demand to expand over the course of the next 12 months, and 52% of respondents expect higher #aircargo volumes.

Despite the various headwinds that both passenger and cargo operations face in 2023 – including continued inflation, airspace constraints, labor, skill and capacity shortages, delayed aircraft deliveries, and strikes – the #aviationindustry remains positive as the peak Northern Hemisphere summer rapidly approaches.

Access latest #WeeklyChart and industry confidence: https://bit.ly/3BUFvgJ

#economics #airtransport #aviation #travel #economicdevelopement

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