Lufthansa Cargo to include rising SAF costs in its Airfreight Surcharge price index

In a press release, Lufthansa Cargo says the higher prices are 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 two percent will apply from 2025. Countries outside the EU are also planning to introduce or have already introduced mandatory SAF blends,” explains Lufthansa Cargo, in its press release.

Lufthansa Cargo adds that the Indian government, for example, is working on a mandatory quota of one to five percent from 2027, while Singapore is requiring airlines to add one percent SAF to flights departing from Changi Airport starting in 2026.

“Singapore’s target is three to five percent by 2030. By then, the EU will require six percent, and the UK and Japan will require ten percent,” states Lufthansa Cargo.

In light of its decision, Lufthansa Cargo has also called for a targeted policy support strategy designed to spark a competitive sustainable aviation fuel market.

In Lufthansa Cargo’s opinion, 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”.

The German air freight company adds that Biogenic SAF is currently available in small quantities and is 3-5 times more expensive than fossil fuel.