IATA AGM: News in Brief

Policy shortcomings put SAF production at risk: The International Air Transport Association (IATA) announced that it expects Sustainable Aviation Fuel (SAF) production to reach 2 million tonnes (Mt) (2.5 billion liters) or 0.7% of airlines’ total fuel consumption in 2025. “While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,” said Willie Walsh, IATA’s Director General. Most SAF is now heading toward Europe, where the EU and UK mandates kicked in on 1 January 2025. Unacceptably, the cost of SAF to airlines has now doubled in Europe because of compliance fees that SAF producers or suppliers are charging. For the expected one million tonnes of SAF that will be purchased to meet the European mandates in 2025, the expected cost at current market prices is $1.2 billion. Compliance fees are estimated to add an additional $1.7 billion on top of market prices—an amount that could have abated an additional 3.5 million tonnes of carbon emissions. Instead of promoting the use of SAF, Europe’s SAF mandates have made SAF five times more costly than conventional jet fuel. “This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization. Raising the cost of the energy transition that is already estimated to be a staggering $4.7 trillion should not be the aim or the result of decarbonization policies. Europe needs to realize that its approach is not working and find another way,” said Walsh. IATA urges governments to focus on three areas: Creating more effective policies. Eliminating the disadvantage that renewable energy producers face compared with big oil is necessary to scale renewable energy production in general and SAF production in particular. This includes redirecting a portion of the $1 trillion in subsidies that governments globally grant for fossil fuel. Develop a comprehensive approach to energy policy that includes SAF. Firstly, advancing SAF production requires an increase in renewable energy production from which SAF is derived. Secondly, it also requires policies to ensure SAF is allocated an appropriate portion of renewable energy production. A wholistic approach should support joint use of infrastructure, co-production and other measures that will benefit the energy transition for aviation and for all other economic sectors. Ensure the success of CORSIA as the sole market-based mechanism to address international aviation’s CO2 emissions. IATA urges governments to make Eligible Emissions Units (EEUs) available to airlines. To date Guyana is the only state to have made their carbon credits available for airlines to purchase and claim against their CORSIA obligations. IATA Diversity & Inclusion Awards announced: IATA announced the winners of the annual IATA Diversity & Inclusion Awards: Inspirational Role Model: Claudia Zapata-Cardone, President of the Latin Professionals in Aerospace (LPA); High Flyer: Katherine Moloney, Founder of Elevate (her) Aviation; Diversity & Inclusion Team: Air Canada. “Diversity and inclusion is strategic for aviation as the industry’s growth is contingent upon attracting a strong talent pool with a wide variety of skills. Congratulations go to this year’s awardees who have all excelled at creating the potential for any individual to have a great career in aviation—an industry that is a powerful force for social and economic prosperity. Their achievements are examples for others to follow,” said Karen Walker, Editor-in-Chief, Air Transport World and Chair of the judging panel. “As we mark the seventh year of the IATA Diversity and Inclusion Awards, they continue to play a pivotal role in making aviation a more inclusive and representative industry that supports innovation, enhances decision making, and strengthens customer engagement. These awards highlight how inclusion is not just the right thing to do—it’s also a strategic advantage. I commend all the nominees, and especially the winners,” said Willie Walsh, IATA’s Director General. The IATA Diversity & Inclusion Awards are sponsored by Qatar Airways. Through their support, each winner receives a prize of $25,000, payable either to themselves or their nominated charities. $1.3 billion in airline funds blocked by governments: The International Air Transport Association reported that $1.3 billion in airline funds are blocked from repatriation by governments as of end April 2025. This is a significant amount, although it is an improvement of 25% compared with the $1.7 billion reported for October 2024. IATA urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations. “Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines which operate on very thin margins. Economies and jobs rely on international connectivity. Governments must realise that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” said Willie Walsh, IATA’s Director General. Pakistan and Bangladesh, previously in the top five blocked funds countries, have made notable progress in clearing their backlog to $83 million and $92 million, respectively (from $311 million and $196 million in October 2024, respectively). Mozambique has climbed up to the top of blocked funds countries, withholding $205 million from airlines, compared with $127 million in October 2024. The Africa and Middle East (AME) region accounts for 85% of total blocked funds, at $1.1 billion as of end April 2025. The most significant improvement was noted in Bolivia, fully clearing its backlog that stood at $42 million at end October 2024. ​​Luis Gallego chairs IATA board​: The International Air Transport Association (IATA) announced that Luis Gallego, CEO of International Airlines Group (IAG), has assumed his duties as Chair of the IATA Board. His one-year term began at the conclusion of the 81st IATA Annual General Meeting in New Delhi, India, on 2 June 2025. Gallego is the 83rd Chair of the IATA Board on which he has served since 2018. Gallego succeeds IndiGo CEO Pieter Elbers, who will continue to serve on the Board. “I am honoured to be taking up the position of Chair of the IATA Board. The airline industry faces significant challenges—accelerating environmental action, managing geopolitical shifts and supply chain issues, and dealing with concerns over infrastructure capacity and costs. At the same time, the industry has incredible strengths to call on— most of all the quality of the people that strive to make aviation a safe, secure and rewarding experience for millions of travelers every day. IATA has a vital role in harnessing these human and technical resources to deliver leadership and innovation. I look forward to playing my part in steering IATA in its long mission for a strong and successful airline industry,” said Gallego. Gallego has nearly 30 years of broad experience in the aviation industry. He became IAG’s chief executive in September 2020, joining from Iberia, where he was chairman and chief executive from January 2014. During his tenure at Iberia, he turned the airline around and improved its efficiency, customer service and brand. Before that, Gallego launched Iberia Express, as chief executive from January 2012, making the new Iberia subsidiary one of the most efficient and punctual airlines in Europe. LATAM Airlines Group to host 82nd IATA AGM in Rio de Janeiro​: IATA announced that the 82nd IATA Annual General Meeting (AGM) will be held in Rio de Janeiro, Brazil in June 2026, hosted by LATAM Airlines Group. “We are excited to accept LATAM’s offer to host IATA’s 82nd AGM in Rio de Janeiro. The last time the IATA AGM was in South America was in 1999, also in Rio. It will be a great opportunity to take stock of changes over two decades of development that have seen strengthening air connectivity successfully support major world events like the FIFA World Cup and the Olympics. By meeting in the largest aviation market in South America, the AGM will highlight the great potential for aviation to be an even more powerful strategic force driving social and economic prosperity,” said Willie Walsh, IATA’s Director General. “LATAM is proud to host the IATA AGM in Brazil in 2026, the main market for our airline group connecting South America to the world. In addition to facilitating a successful gathering of our industry leaders, we look forward to showcasing the contributions and enormous potential for aviation in Brazil and throughout South America. We are confident that Rio de Janeiro, one of the most spectacular cities in the world with its unparalleled hospitality and beauty, will ensure a warm welcome and a memorable experience for all attendees,” said Roberto Alvo, CEO of LATAM Airlines Group. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]