Increased airfares for flights out of S'pore from 2026 due to govt levy for environmental sustainability

CAAS estimated that the levy for short-haul flights, such as to Bangkok, will be S$3, while long-haul flights, such as to London, will be S$16.

Amber Tay | February 19, 2024, 04:56 PM



Travellers flying out of Singapore will have to pay higher airfares starting in 2026 due to a levy imposed to support using environmentally sustainable jet fuel.

The move was part of a sustainable air hub blueprint launched by Transport Minister Chee Hong Tat at the second Changi Aviation Summit on Feb. 19, 2024, as announced by the Civil Aviation Authority of Singapore (CAAS).

How will the levy be measured?

While the details are not finalised yet, the CAAS suggests that passengers may incur an additional levy depending on factors such as flight class and distance.

Here are some of the following estimates given by CAAS for economy class passengers based on distance, though specific details have not been finalised:

  • short-haul flight to Bangkok: S$3
  • medium-haul flight to Tokyo: S$6
  • long-haul flight to London: S$16

For those flying in premium class, higher levies would be imposed.

More details will be announced in 2025 before the implementation date as CAAS continues consulting stakeholders.

How will it reduce energy use in Singapore?

Sustainable jet fuel is made from waste materials such as used cooking oil and is said by CAAS to be a critical pathway for the decarbonisation of aviation.

The price of sustainable jet fuel — three to five times more expensive than standard fuel — can reduce carbon emissions by up to 80 per cent per life cycle compared to current conventional fuel.

The additional levy imposed on passengers will be used to purchase sustainable aviation fuel for airlines.

The move is aimed to help achieve the one per cent target for sustainable aviation fuel in 2026.

By 2030, Singapore aims to reach three to five per cent sustainable fuel use.

The move will contribute to Singapore's sustainable air hub blueprint developed by CAAS, which includes 12 initiatives across three domains—airport, airline and air traffic management.

The sustainable fuel is also expected to contribute approximately 65 per cent of the carbon emission reduction needed to achieve net zero by 2050.

Future developments in Changi East, such as Terminal 5, are excluded from this goal, and their emission targets will be determined separately.

First country to introduce a levy for sustainable aviation fuel goals, said CAAS

Singapore will be the first country in the world to introduce a levy to meet its sustainable aviation fuel goals, according to CAAS.

Other countries have implemented their sustainable aviation goals in the form of mandates that are based on fixed volumes.

By imposing a levy instead of a mandate, CAAS said this fixes the cost of using greener jet fuel, creating better clarity for travellers and airlines.

Top image via Canva.