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Malaysia Airlines parent company may consider a green tax as sustainable fuel strains airlines

Malaysia Airlines’ parent says SAF makes up under 1% of global jet fuel use and is too costly, prompting a review of a possible green tax.

  • On Monday, Nasaruddin, head of Malaysia Airlines' parent company, said he does not rule out a green tax on passengers to offset high sustainable aviation fuel costs, though the move would further raise ticket prices.
  • Sustainable aviation fuel currently accounts for under 1% of global jet fuel use, as production capacity and access to sustainable feedstocks remain key constraints limiting wider adoption.
  • To meet emissions goals, Malaysia Airlines is modernizing its fleet with orders for 40 fuel-efficient Airbus A330neos and 55 Boeing 737 MAX jets; using SAF could cut about 65% of industry emissions.
  • Neighboring Singapore announced a government-mandated green aviation tax starting January 2027, while Nasaruddin warned that passing full costs to consumers could make air travel less attractive without industry collaboration.
  • The International Civil Aviation Organization has set a goal of zero net carbon emissions for 2050, though the group faces added pressure from higher conventional jet fuel prices amid the Iran war.
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Malaysia Airlines parent company may consider a green tax as sustainable fuel strains airlines

The head of Malaysia Airlines' parent company says it may consider a green tax on passengers that could help offset the high costs of sustainable aviation fuel.

·New York, United States
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Owensboro Messenger-Inquirer broke the news on Monday, October 19, 2026.
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