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Singapore Introduces Fixed Flight Levy

Singapore Introduces Fixed Flight Levy to Fund Sustainable Aviation Fuel

New Green Fee Takes Off in 2026

Singapore introduced a fixed levy on all departing flights to support cleaner aviation practices starting in 2026. The levy will fund the purchase and management of sustainable aviation fuel (SAF) for airlines refueling in Singapore.

Authorities aim for SAF to make up 1% of all jet fuel by 2026 and 3–5% by 2030. This initiative strengthens Singapore’s leadership in sustainable aviation and long-term emissions reduction.

Funding Sustainable Air Travel

The Civil Aviation Authority of Singapore (CAAS) will collect the levy from all departing flights. Funds will be used to manage bulk SAF procurement and ensure stable supply for airlines.

The levy will remain fixed to protect airlines and passengers from price fluctuations in the SAF market. Authorities believe this approach will drive demand for SAF and support global sustainability goals.

Impact on Airfares

Officials expect only a small fare increase shared by all travellers and operators.

  • A short-haul economy flight to Bangkok may rise by S$3 (US$2.30).
  • A long-haul flight to London could increase by S$16 (US$11.80).

Authorities emphasise that the contribution is minor compared to the environmental benefits achieved.

Industry Debate Over Green Costs

The International Air Transport Association (IATA) warned the levy could discourage air travel. IATA prefers government incentives or subsidies instead of direct passenger levies.

Singapore’s former Temasek CEO, Ho Ching, called IATA’s criticism “wrong headed” and short-sighted. She argued that shared financial responsibility is essential for aviation’s sustainable future.

A Step Toward Cleaner Skies

The levy reinforces Singapore’s position as a sustainability leader in Asian aviation. It balances environmental responsibility with long-term economic growth in the travel sector.

Singapore’s model could inspire other nations aiming for greener aviation practices. The message is clear: sustainable aviation is essential for the future of flight.