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# SIA Holds the Line on SAF as Middle East Fuel Shock Bites
- URL: https://review.iffw.sg/sia-holds-the-line-on-saf-as-middle-east-fuel-shock-bites/
- Published: 2026-07-05T15:23:00.000Z
- Updated: 2026-09-13T16:10:57.000Z
- Description: Singapore Airlines reaffirmed its SAF commitment despite a Middle East-driven fuel cost shock, continuing its voluntary SAF trial with Scoot and Changi Airport Group even as CAAS deferred the mandatory levy's start date. SIA has hedged 47% of expected fuel needs but hasn't reintroduced surcharges.
- Author: Editor
- Tags: News, Aviation, SAF, Asia Pacific

Singapore Airlines Group has reaffirmed its commitment to sustainable aviation fuel even as a fuel cost shock, driven by the Middle East conflict, pushes jet fuel prices well above year-ago levels. An SIA spokesperson told S&P Global Platts the group continues to engage different SAF suppliers while exploring diverse sourcing models for a resilient long-term supply chain. The reaffirmation comes weeks after CAAS deferred the SAF Levy's start date in response to the same cost pressures.

### **Two Tracks, Different Speeds**

The levy deferral changed the mandatory funding mechanism's timeline. It did not touch a separate, voluntary SAF procurement trial involving SIA, its low-cost unit Scoot, Changi Airport Group, and several financial institutions, which CAAS confirmed is proceeding as planned. That distinction matters: Singapore's SAF ecosystem is not running on a single track tied to the levy's fortunes, but on parallel mandatory and voluntary mechanisms that can move at different speeds under pressure.

### **Hedging Cushions the Shock**

SIA has hedged roughly 47% of its expected fuel requirements for the fourth quarter of FY2025-26 and 41% for the first quarter of FY2026-27, which has partly cushioned the airline from the worst of the price volatility. Notably, SIA has not reintroduced a fuel surcharge, instead adjusting fares directly across the network, a choice that only partially offsets the higher cost base.

### **Why the Trial Is the Story to Watch**

A mandatory levy generates guaranteed volume once it takes effect. A voluntary trial, run by choice and continuing through a genuine cost shock, is a stronger signal of underlying commercial intent. If SIA, Scoot, Changi Airport Group and their financial partners keep the voluntary trial moving through a period when deferring the mandatory levy was the easier political call, that says more about the durability of Singapore's SAF demand than the levy timeline itself.

*Source:* [*S&P Global Platts*](https://www.spglobal.com/energy/en/news-research/latest-news/refined-products/042826-singapore-airlines-maintains-saf-plans-grows-routes-despite-fuel-shock?ref=review.iffw.sg)*, 28 April 2026.*