Lufthansa Cargo said from January 1, 2025, it will include the costs of sustainable aviation fuel (SAF) due to regulatory environmental requirements in the price index of its existing Airfreight Surcharge (ASC).

For departures from European Union (EU) countries, a mandatory SAF blending rate of initially 2% will apply from 2025.

Countries outside the EU are also planning to introduce or have already introduced mandatory SAF blends.

Lufthansa said the Indian government, for example, is working on a mandatory quota of one to five percent from 2027. Singapore requires airlines to add 1 percent of SAF to flights departing from Changi Airport starting in 2026, with a target of 3%-5% by 2030. 

By then, the EU will require 6%, and the UK and Japan will require 10%.

"SAF is a crucial technological key to more sustainable flying and is essential for the energy transition in aviation. However, the aviation industry cannot initiate a competitive SAF market on its own," Lufthansa Cargo said.

Policy to boost SAF production urged

It noted that a targeted policy support strategy is required.

"Significantly more use of SAF is only possible if its supply volumes and availability increase substantially as quickly as possible and the prices fall accordingly. Biogenic SAF is currently available in small quantities and is 3-5 times more expensive than fossil fuel. A targeted policy strategy is needed to be able to meet the volumes for the blending rates and beyond," the German cargo airline wholly owned by Lufthansa added.

Over its entire life cycle, SAF made from biogenic residues has a carbon footprint that is approximately 80% lower than that of conventional kerosene made from fossil crude oil.

Lufthansa Cargo explained that the ASC has been in effect since 2015. It is a combined surcharge to cover additional costs that cannot be influenced by Lufthansa Cargo, mainly rising fuel, currency and security prices.

Lufthansa Cargo noted that it monitors the development of additional costs using a standardized index calculation system. The ASC is then added to the net price of each shipment, but different regulations result in different surcharge levels from country to country.

Lufthansa Group aims to achieve a neutral CO₂ balance by 2050.

By 2030, Lufthansa Cargo aims to halve its net CO₂ emissions compared to 2019 through reduction and compensation measures.

It relies, in particular, on a state-of-the-art fleet, the use of sustainable aviation fuels, the continuous optimization of flight operations and optional offers to make cargo transportation more sustainable.