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

The chief executive of Malaysia Airlines’ parent company said he does not rule out a “green tax” on passengers to help offset rising costs of sustainable aviation fuel (SAF). Capt. Nasaruddin A. Bakar made the comments as airlines try to cut carbon emissions while SAF remains scarce and far more expensive than conventional jet fuel. He said consumer affordability and the airline’s ability to buy SAF must both be considered. Singapore announced a government-mandated green aviation tax starting January 2027, with charges varying by destination and cabin class. The International Energy Agency estimates aviation accounts for about 2.5% of annual global emissions. SAF can cut emissions by about 65%, though it represents less than 1% of global jet fuel use.