IAG Calls for Fairer Regulations & More Incentives in SAF Effort

Luis Gallego, chief executive officer of International Airlines Group (IAG), speaks during a keynote session at the World Aviation Festival in Lisbon, Portugal, on Wednesday, Sept. 27, 2023. Aviation executives from across the world are gathering in Lisbon this week for the World Aviation Festival to discuss the state of the industry in its first full year after the pandemic. Photographer: Zed Jameson/Bloomberg via Getty Images

IAG has called for a cheaper regulation system, fairer obligations and better incentives for airlines to transition to greener fuel in order to lower emissions.

The group – which owns Aer Lingus, British Airways, Vueling, LEVEL, and Iberia – made progress, last year, in improving its sustainability practices by increasing its sustainable aviation fuel (SAF) usage to 3.3% of total annual fuel volumes; and investing in new generation fuel efficient planes.

However, the airline owner said more needs to be done by regulators to help airlines continue on the right path.

“We recognise the need to achieve net zero emissions by 2050 and for the aviation sector to develop sustainably. IAG advocates for a transition where climate regulations uphold the competitiveness of all airlines globally. This means regulators must administer appropriate, fair obligations on all airlines to reduce carbon emissions, alongside providing incentives that support the delivery of each emission-reduction initiative,” IAG said in its recent 2025 financial results presentation.

The airline group added: “The deliverability of emission-reduction initiatives is undertaken in collaboration with key stakeholders. The Group monitors its targets in relation to available government support and market conditions to ensure it remains competitive with peers.

“The current regulatory requirements mean that European airlines will continue to be burdened with significant extra cost and be disadvantaged compared to our global competitors. We, therefore, continue to engage with governments and regulators to find solutions to these challenges, to support the delivery of the sector’s sustainability goals.”