Logistics Bottlenecks Threaten European SAF Rollout, IATA Forum Hears

The European aviation sector is confronting severe supply chain and infrastructure bottlenecks as it adapts to tightening sustainable aviation fuel (SAF) mandates, according to discussions at the IATA Aviation Energy Forum held from 12 to 14 May in Paris, MaltaToday reported.

Under the European Union's ReFuelEU Aviation framework, mandatory SAF blending thresholds are now in effect and set to scale progressively towards 2050. However, forum delegates noted that physical delivery mechanisms are struggling to match the pace of regulatory obligations, moving the primary challenge from policy design to operational execution.

Logistics and Infrastructure Deficits

SAF production remains concentrated across a limited number of manufacturing sites. Downstream logistics assets—including dedicated storage capacity, certified blending infrastructure, and pipeline connectivity—continue to lag behind required distribution volumes across European hubs.

Simultaneously, broader energy security concerns are compounding the transition. Geopolitical disruption, fluctuating refinery margins, and strict emissions limits are impacting conventional jet fuel availability, prompting airlines and buyers to prioritise supply resilience alongside price and volume considerations.

Integration Across the Supply Chain

Market participants emphasised that navigating these challenges requires extensive multi-segment integration across fuel logistics. Trading and distribution firms with established infrastructure access are taking on a more prominent operational role.

Malta-based commodity trading group Alkagesta highlighted its expanded aviation fuel presence at the forum. The company, which maintains trading activities across 42 countries, has secured supply agreements connected to the NATO Central European Pipeline System supplying airports across Germany and Belgium, alongside securing ISCC CORSIA certification for sustainable fuel handling.

Alkagesta chief executive Orkhan Rustamov told delegates that aviation fuel procurement has fundamentally evolved, with certified logistics infrastructure and compliance guarantees becoming central to supply continuity. Industry observers concluded that the sector's decarbonisation pace will ultimately depend on physical distribution networks, tanks, and pipeline systems rather than policy targets alone.

Sources

• MaltaToday — original report
• ePlane AI — original report