REGULATORY · MARKET STRUCTURE · SINGAPORE
Singapore imposes aviation ticket levy to fund sustainable fuel
Yahoo
16 Feb · 2:15 PM
Change
Singapore will add a sustainable aviation fuel levy of S$1 to S$41.60 per airline ticket for flights departing Singapore in 2025.
Why it matters
The levy applies per ticket and scales by route distance and cabin class, ranging from S$1 for economy flights within Southeast Asia to S$41.60 for premium-cabin flights to the Americas. This changes the cost structure for carriers operating out of Singapore and for corporate travel budgets that route through Changi. Because the charge is linked to passenger traffic, funding for sustainable aviation fuel will fluctuate with demand and route mix rather than being fixed by annual appropriations. The policy also formalizes a price signal for SAF in a major regional hub, affecting how airlines account for SAF-related costs on Singapore-origin itineraries in 2025.
Implications
- • Higher all-in fares on Singapore-departing itineraries in 2025
- • New per-passenger cost line item varies by cabin and distance
- • SAF funding becomes tied to passenger volumes and route mix
- • Pricing/contracting may diverge for Singapore-origin vs other hubs
Who is affected
- • Airlines operating flights departing Singapore (including Singapore Airlines and foreign carriers)
- • Passengers purchasing tickets for Singapore-origin flights
- • Corporate travel buyers and travel management companies booking via Singapore
- • Airports and aviation fuel suppliers involved in SAF supply for Changi operations
Source
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Topics
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