Higher airfares for travellers departing Singapore from 2026, with new levy to ensure flights use sustainable fuel

CAAS estimates additional fees ranging from $3 to $16 for economy-class flights, with business class and first class paying more

A Singapore Airlines aircraft at Singapore's Changi Airport Terminal 3.
A Singapore Airlines aircraft at Singapore's Changi Airport Terminal 3. (PHOTO: Xinhua/Then Chih Wey via Getty Images)

SINGAPORE — Travellers flying out of Singapore will have to fork out more for their airfares from 2026. This is due to a new levy that the Singapore government will impose to ensure flights departing from the city-state use sustainable aviation fuel.

The Straits Times (ST) reported on Monday (19 February) that while specific details still need to be finalised, the Civil Aviation Authority of Singapore (CAAS) estimates a possible $3 levy for short-haul economy-class flights, such as those to Bangkok.

The levy for medium-haul flights to Tokyo and long-haul flights to London are estimated to be $6 and $16 respectively. The levy will also differ based on the class of travel, with business class and first class paying more.

The estimates are based on a national target that Singapore has set for sustainable aviation fuel to constitute 1 per cent of all jet fuel used at Changi Airport and Seletar Airport in 2026. The eventual goal is to reach 3 per cent to 5 per cent sustainable fuel use by 2030.

ST reported that the money collected from the passenger levy will go towards the bulk purchase of sustainable aviation fuel for airlines. Sustainable fuel is primarily made from waste materials such as used cooking oil and can be up to five times more expensive than conventional fuel.

CAAS said that finalised details will be announced nearer the date of implementation in 2025.

Aiming for net-zero emissions

This new levy is part of Singapore’s sustainable air hub blueprint that was developed by CAAS and launched by Transport Minister Chee Hong Tat on Monday at the second Changi Aviation Summit, reported The Straits Times.

The blueprint outlines 12 initiatives for the city-state to tackle aviation emissions, with the objective of reducing carbon emissions from airport operations to 326 kilotonnes per year in 2030. This is 20 per cent lower than the carbon emission levels in 2019.

By 2050, Singapore aims to reach net-zero domestic emissions from its airports and net-zero international emissions from its carriers. This goal excludes future developments such as Terminal 5, as they will have their own separate emission targets.

According to CAAS, Singapore will be the first country in the world to introduce a levy to meet its sustainable aviation fuel goals. This means that the additional costs that travellers have to pay will be fixed and will not be subject to the volatility of sustainable fuel prices.

Other initiatives under the sustainable air hub blueprint include deploying more solar panels at airports, improving air traffic management to reduce fuel burn, and using cleaner energy for vehicles at airports.

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