Singapore flights to be hit by sustainable aviation fuel levy from October 2026

Back in February 2024, the Civil Aviation Authority of Singapore (CAAS) announced plans to introduce a sustainable aviation fuel (SAF) levy aimed at decarbonising airline operations.

Singapore will become the first country in the world to impose such a levy (yay?), which supports its goal of having 1% of all jet fuel used at Changi and Seletar Airports come from SAF by 2026. This will further increase to 3-5% by 2030, depending on “global developments and the wider availability and adoption” of SAF. 

CAAS has now revealed the levy rates, which apply to flights departing from October 2026. Depending on the cabin class and destination, passengers will pay an extra S$1 to S$41.60 per ticket.

While the amount is small in absolute terms, the imposition of what’s basically a mandatory “green tax”– and the fact that transit passengers are exempt – is bound to attract criticism in some quarters. Together with Changi Airport’s planned 21% increase in passenger fees by 2030, flying out of Singapore is set to become more expensive.

CAAS announces sustainable aviation fuel levy rates

The new SAF levy will be collected for tickets sold from 1 April 2026 onwards, for flights departing from Singapore on or after 1 October 2026. 

To be clear: the levy will not apply to tickets sold before 1 April 2026, even if your flight departs on or after 1 October 2026. Therefore, you could forestall the levy by locking in your travel plans early- though airlines typically only sell tickets one year in advance, so sooner or later you’ll be impacted.

The levy will depend on two factors: destination and cabin. Destinations will be divided into four bands, with one charge for Economy and Premium Economy Class passengers, and another for Business and First Class passengers.

For flights with multiple stops, the levy will be calculated based on the immediate next destination after departing Singapore.

This, ironically, would have the effect of penalising passengers who fly non-stop routes, which are more fuel-efficient than connecting flights. For example, a passenger who flies from SIN-HKG-SFO on Cathay Pacific would pay a lower levy (S$2.80/S$11.20) than one who flies from SIN-SFO on Singapore Airlines (S$10.40/S$41.60).

Now, you might be thinking that one way of gaming the system would be to choose flights with stopovers. But those savings could very well be offset by the additional airport taxes incurred from a transit.

To illustrate, here’s the taxes and surcharges on Singapore Airlines’ two USA routes with non-stop and stopover options, based on current airport taxes and the new SAF levy.

In the case of Economy or Premium Economy travel, any savings on SAF from adding a stopover are more than offset by the higher airport taxes.

In Business or First, it’s slightly more complicated. For Singapore to New York JFK, the SAF savings would be offset by the cost of a stopover in Frankfurt, but for Singapore to Los Angeles, adding Tokyo Narita as a stopover does save you S$13.90 – though whether that’s worth the time lost to transit is another matter altogether.

Transit passengers escape the levy

The SAF levy will not apply to passengers transiting through Singapore, a decision which is bound to ruffle some feathers. 

On the one hand, the decision kind of makes sense. Transit passengers make up more than a third of Changi’s total traffic, and imposing additional fees could weaken Singapore’s position as a major transit hub.

On the other, the optics are problematic, because it makes it look as if Singapore residents have to subsidise transit passengers. I mean, transit passengers already pay lower airport taxes, but you could argue that they don’t make use of the immigration or public area facilities (assuming they don’t exit the secure area). It’s much harder to make a similar argument here, because it’s not as if a transit passenger’s air miles are less polluting than someone who originates from Singapore. 

Will the SAF levy increase?

For what it’s worth, CAAS has stated that the levy will be fixed as long as the SAF target remains at 1%, even if the cost of SAF increases.

However, when the SAF target is raised from 1% to 3-5%, as it is expected to be by 2030, then the levy amount will “be relooked”.

This is particularly bad for award tickets

The introduction of a S$1 to S$41.60 SAF levy does not mean that the cost of commercial tickets will increase by S$1 to S$41.60.

Instead, airlines may tweak their base fares to keep the overall cost of tickets competitive, thereby absorbing some of the levy. In other words, the burden of the levy will end up being split between the passenger and airline, depending on the extent to which the latter believes the former will be willing to absorb it. 

In the case of award tickets, however, it’s a completely different matter. The full burden of the levy will fall on the passenger, just like any other tax or surcharge.

Other fee hikes are coming soon

Unfortunately, the SAF levy is not the only fee hike on the horizon. Changi Airport previously announced plans to hike airline and passenger fees to finance a S$3 billion airport investment, which will be progressively implemented from 1 April 2027 onwards.

In short, the current fee of S$65.20 will be increased by 21% to S$79.20 by 2030.

Together with the SAF levy, a departing passenger could have to pay as much as S$120.80 by 2030!

Conclusion

The CAAS has announced the rates for Singapore’s new sustainable aviation fuel levy, which will add up to S$41.60 to air tickets when it goes into effect in October 2026, with exemptions for transit passengers. 

Because of how prices for commercial tickets are displayed, this levy will end up being shared between airline and passenger in some proportion. However, those flying on redemption tickets should expect to bear the full brunt of the levy, just like any other fee. 

What do you make of this SAF levy?