Flying out of Singapore is about to get pricier. From 2026, a new sustainable aviation fuel (SAF) levy will kick in, adding between $1 and $41 to ticket prices — and even taxing cargo. What does this mean for travellers, airlines, and Singapore’s competitiveness as an air hub? 

Host Derryn Wong speaks with SMU aviation expert Terence Fan to unpack what SAF really is, why it matters, how the levy works, and whether businesses or tourism might feel the pinch.

Highlights:

01:55 What is SAF?

07:15 Singapore’s levy policy

09:24 Impact on Changi’s business

11:28 How other countries are doing it

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Send us your questions, thoughts, story ideas, and feedback to btpodcasts@sph.com.sg.

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Written and hosted by: Derryn Wong (derrynwong@sph.com.sg)

With Terence Fan, assistant professor of Strategy & Entrepreneurship (Education), Singapore Management University

Edited by: Emily Liu & Claressa Monteiro

Produced by: Derryn Wong, Emily Liu & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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