British Airways Owner Warns Green Fuel Rules Could 'Kill European Aviation'

Jan de Vries · 2026-11-09

Luis Gallego, the CEO of International Airlines Group (IAG), the parent company of British Airways, has issued a stark warning: sustainable aviation fuel (SAF) mandates could "kill European aviation" if they're not implemented carefully. In a recent statement, Gallego cautioned that the push for greener fuels might lead to higher costs, increased fares, and a weakened competitive position for European airlines. ### The Cost Challenge SAF is currently much more expensive than traditional jet fuel—often two to three times the price. As mandates kick in, airlines will be forced to buy increasing amounts of SAF, driving up operating costs. Those costs will likely be passed on to passengers through higher ticket prices. Gallego argues that this could make European carriers less competitive against airlines from regions with less stringent environmental rules. > "We all want a greener future for aviation, but we need a level playing field. Otherwise, we risk pushing European airlines out of business," Gallego said. ### A Competitive Disadvantage European airlines already face tough competition from carriers in the Middle East, Asia, and the US, where SAF mandates are less aggressive or non-existent. If European airlines are burdened with higher fuel costs, they may lose market share on international routes. That could lead to job losses and a decline in Europe's aviation sector. ### The Industry's Dilemma Airlines are committed to reducing their carbon footprint, but they need supportive policies. Gallego suggests that governments should incentivize SAF production and provide subsidies to bridge the price gap. Without such measures, the transition could be painful and even counterproductive. ### What's Next? The debate over SAF mandates is heating up as the EU pushes its Fit for 55 package, which includes ambitious targets for SAF usage. Airlines are urging policymakers to consider the economic impact and to work with the industry to find a balanced approach. Gallego's warning is a wake-up call. The transition to green aviation must be managed carefully to avoid unintended consequences. As the industry navigates this challenging path, stakeholders must collaborate to ensure that European aviation remains competitive and sustainable. ### Key Takeaways - SAF mandates could significantly raise costs for European airlines. - Higher costs may lead to increased fares and reduced competitiveness. - The industry calls for government support to level the playing field. - A balanced approach is needed to achieve environmental goals without harming the sector. This story is developing, and we'll keep you updated as more details emerge.