Sustainable fuel scarcity and rising oil prices hinder aviation’s decarbonization efforts

International aviation’s push to cut emissions is being slowed by a basic problem: sustainable aviation fuel is still too expensive and too scarce to be widely adopted, according to the International Air Transport Association, as reported by Asharq Al-Awsat. The industry group says the limited supply of non-petroleum fuel is making it difficult for airlines to reduce carbon emissions at the pace regulators and passengers increasingly expect.

That challenge is colliding with a separate pressure on airlines: higher fuel costs. Asharq Al-Awsat reports that British Airways is planning to raise ticket prices as a result of rising fuel expenses linked to the conflict in the Middle East. The combination of volatile conventional fuel markets and the high cost of cleaner alternatives is putting airlines in a difficult position, forcing them to balance decarbonization goals with short-term financial reality.

Jet fuel prices have climbed sharply in recent months. According to a March 2026 market update cited by MBA Aero, prices surged beyond $150 per barrel amid fears of supply disruption in the Strait of Hormuz, a major chokepoint for global oil shipments. The same report says oil prices rose from the mid-$60s in early 2026 to more than $100 a barrel by early March, pushing up aviation fuel costs across the region.

For airlines, this matters because fuel is one of their biggest expenses, and price swings can quickly affect fares, route planning and profitability. The pressure is especially acute in markets already exposed to geopolitical risk, where conflict can disrupt supply chains and raise operating costs even before flights are directly affected.

The broader issue is also central to the aviation sector’s climate strategy. Sustainable aviation fuel is widely seen as one of the few practical tools available to cut emissions from flying, but the industry still lacks enough supply to make it a near-term replacement for conventional jet fuel. That leaves airlines dependent on fossil fuels for most of their operations, even as they face growing demands to reduce their environmental footprint.

What happens next will depend on whether governments, producers and airlines can scale up production and bring down the price of cleaner fuel. Until that happens, passengers are likely to see continued pressure on ticket prices, while airlines remain caught between rising costs and the need to invest in lower-carbon aviation.