Airlines Seek Shared Responsibility for Decarbonization

The International Air Transport Association’s (IATA) Asia-Pacific head of sustainability, Kelvin Lee, stated in Hong Kong that airlines cannot independently fund the transition to greener flying. Lee explained that airlines already operate on thin profit margins, averaging just US$3 per passenger in the Asia-Pacific region. He urged governments, investors, and passengers to share the financial burden of reducing aviation’s 2.5 percent contribution to global CO2 emissions.

IATA anticipates airlines will need approximately 200 million carbon credits to comply with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from 2024 to 2026, but currently only has around 38 million available. Sustainable aviation fuel (SAF) offers another path to emissions reduction, however, current SAF production is limited to 0.8 percent of total jet fuel demand.

IATA believes coordinated action on technology, infrastructure, and policy is crucial to achieve net-zero emissions by 2050, acknowledging that solutions within the aviation sector alone are insufficient.