Singapore is raising air travel costs — but with a climate goal in mind. From this year, passengers flying in and out of the city-state will pay a new levy to fund the use of sustainable aviation fuel (SAF).

The surcharge will range from 1 Singapore dollar (about 75 cents) for short-haul economy flights within Southeast Asia to 41.60 Singapore dollars (about $32) for premium cabin flights to the Americas. Moreover, it will apply to tickets sold after 1st April for flights departing from Changi Airport on or after 1st October. Changi Airport handled a record 70 million passengers last year. The levy will also apply to air cargo, based on weight and distance. Additionally, it will be clearly shown on tickets and contracts.

The move is aimed at boosting the use of SAF, a cleaner-burning alternative fuel often made from used cooking oil or agricultural waste. The aviation industry sees SAF as key to cutting emissions without changing existing aircraft. Currently, aviation accounts for about 2.5% of global carbon emissions. However, demand for flying continues to rise.

Southeast Asia is positioning itself as a major SAF production hub. Singapore already has the region’s largest SAF plant. It is starting construction of a next-generation facility this year, with supply agreements in place with major airlines. Thailand opened a new SAF plant in Bangkok in 2025. Meanwhile, Malaysia, Vietnam and Indonesia are expanding domestic production. ASEAN estimates the region could produce 8.5 million barrels of SAF per day by 2050.

However, global momentum has slowed. SAF production had been rising steadily, especially in the United States. But policy rollbacks under President Donald Trump have created uncertainty. Even so, industry experts say Southeast Asia’s strong policy push and abundant raw materials could help sustain growth in the years ahead.

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