Lufthansa Cargo will adjust its Airfreight Surcharge (ASC) starting January 1, 2025, to account for the rising costs of sustainable aviation fuel (SAF) due to mandatory blending regulations. The airline will factor in these additional environmental costs to its pricing structure, particularly for flights departing from European Union (EU) countries, where a 2% SAF blending rate will be required.
Other nations, such as Singapore and India, are also implementing their own SAF quotas, with Singapore mandating 1% SAF by 2026, and India planning quotas between 1-5% by 2027. The EU aims to increase its blending rate to 6% by 2030, while the UK and Japan have set even higher targets of 10%.
Lufthansa Cargo highlights that the increasing cost of SAF cannot be borne solely by the airline industry. While SAF is key to reducing carbon emissions, it is still up to five times more expensive than conventional jet fuel, and supply remains limited. Lufthansa urges policymakers to provide more robust support to build a competitive SAF market.
Introduced in 2015, the Airfreight Surcharge is designed to cover fluctuating operational costs like fuel and security. The surcharge is adjusted based on a cost index monitored by Lufthansa Cargo. Starting in 2025, SAF costs will also be included in this index.
As part of its mission to achieve carbon neutrality by 2050, Lufthansa Cargo has set ambitious sustainability goals. The airline aims to cut its CO₂ emissions by 50% by 2030 compared to 2019 levels, through the use of SAF, modern aircraft, and operational efficiency. Its “Sustainable Choice” program also offers customers the option to reduce their carbon footprint with SAF credits and climate protection projects.
SAF, blended with regular jet fuel, reduces carbon emissions by up to 80% over its lifecycle. However, due to its high production costs and limited availability, Lufthansa Cargo stresses the need for governmental action to promote its widespread adoption.
