📈 Sustainability is still a long way from becoming mainstream in aviation, and the road ahead will be challenging—especially for corporate travel programs committed to Environmental, Social, and Governance (ESG) goals.

Sustainable Aviation Fuel (SAF) is being hailed as the future of eco-friendly flying, but the reality is more complex. In 2026, SAF is expected to cover less than 1% of global aviation fuel demand. The ambition to shift the aviation industry towards greener fuel is a long-term goal, but one that’s facing a significant uphill battle.

Insight: The technology behind SAF is still emerging, and production is not keeping pace with demand. The aviation sector is competing for resources with other industries, including energy-heavy players like AI data centers, which are making the energy transition even more competitive.

Takeaway: For corporate travel programs, this means that while sustainability efforts are essential, they will come at a higher price tag in the short term. As SAF production increases, costs will eventually come down, but that shift won’t be quick enough to meet many companies’ current sustainability targets.

One of the biggest challenges to the rapid expansion of SAF is the competition for renewable energy sources. AI data centers, with their massive energy consumption, are competing for the same clean energy that would fuel SAF production. This competition is slowing down the progress of the aviation industry’s sustainability transition.

Insight: As the demand for data-driven technologies (such as AI, machine learning, and blockchain) grows, energy requirements for AI infrastructure are skyrocketing. This leaves less renewable energy available for aviation’s SAF needs, making it harder for airlines to scale up their sustainability efforts.

Takeaway: For corporate travel buyers, this means that ESG-related air travel costs will rise as renewable energy becomes scarcer and more expensive. Companies committed to sustainability may need to account for these increased costs in their travel budgets.

While SAF has the potential to reduce aviation’s carbon footprint, its cost is currently high. As demand grows and production scales up, the price is expected to decrease. However, in the short-to-medium term, sustainability will come at a premium.

Insight: The aviation sector is in the early stages of transitioning to sustainable fuels, and the infrastructure and technology required to support SAF is still being built. Airlines are faced with the challenge of absorbing higher costs, which ultimately get passed on to corporate travel programs.

Takeaway: Companies looking to stay on track with their sustainability goals will need to consider the rising costs of corporate travel, especially when opting for greener alternatives. Corporate travel programs will likely need to factor in these increased expenses, adjusting their budgets to accommodate this transition.

While the push for sustainability in aviation is undeniable, the progress will be slower—and more expensive—than many had hoped. As SAF’s share of the aviation fuel market remains low, corporate travel programs committed to ESG goals will face rising costs in the near future. Patience and strategic planning will be key as we navigate this challenging road ahead.

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