Turkish Airlines Invests in SAFFA Fund I to Expand SAF Production

Takeaways

• Turkish Airlines joins SAFFA Fund I, reinforcing efforts to expand sustainable aviation fuel (SAF) production and improve long-term fuel availability.
• The Airbus-backed fund invests in mature SAF projects, helping accelerate aviation decarbonization while strengthening fuel supply security.
• The move highlights a growing trend of airlines investing directly in fuel production to meet future climate regulations and rising demand for low-carbon aviation

Turkish Airlines has strengthened its commitment to sustainable aviation by investing in SAFFA Fund I, an Airbus-backed investment fund focused on increasing the production of sustainable aviation fuel (SAF). The move reflects the airline's strategy to support aviation decarbonization while securing reliable access to lower-carbon fuels for the future.

The agreement makes Turkish Airlines one of the latest participants in the fund, which is managed by Burnham Sterling Asset Management. Rather than simply purchasing SAF, the airline is investing directly in projects that are expected to expand global production capacity and advance fuel technologies.

Read More: Global Carriers Unite in Fund to Expand Sustainable Jet Fuel Supply

Established in December 2023, SAFFA Fund I was created to accelerate the development of commercially viable SAF projects. The fund finances projects that have reached technological maturity and are ready to scale production, helping bridge the gap between growing airline demand and limited fuel availability.

The fund follows a diversified investment strategy, backing projects across different regions and production technologies. This approach aims to reduce investment risks while encouraging multiple pathways for producing sustainable aviation fuel. Airbus serves as the anchor investor, with airlines, aviation companies, and financial institutions also contributing to the initiative.

For Turkish Airlines, the investment goes beyond financial returns. It offers the carrier closer involvement in the future of SAF production, feedstock development, and supply chain planning. As governments continue introducing stricter emissions regulations for aviation, securing dependable fuel supplies is becoming increasingly important for airlines operating large international networks.

Levent Konukcu, Deputy General Manager of Turkish Airlines, said the investment demonstrates the airline's commitment to supporting projects that will shape the industry's future. He added that the partnerships created through SAFFA Fund I would strengthen the airline's fuel security while improving access to sustainable aviation fuel and contributing to the global transition toward cleaner aviation.

The investment also reflects a broader shift across the aviation sector. Instead of relying only on fuel purchases, airlines and aircraft manufacturers are increasingly investing directly in production facilities and infrastructure. These investments help reduce future supply risks while supporting the expansion of SAF production worldwide.

Burnham Sterling Asset Management welcomed Turkish Airlines' participation, saying the investment reinforces confidence in sustainable aviation fuel as a long-term infrastructure opportunity. Michael Dickey Morgan, Executive Managing Director of the firm, said the airline's commitment sends a strong message that leading global carriers view the transition to SAF as essential for the industry's future.

Despite growing momentum, significant challenges remain. Sustainable aviation fuel is still more expensive than conventional jet fuel, while production capacity and feedstock availability remain limited. Continued government support through incentives, blending mandates, and carbon pricing policies will play a critical role in making SAF more competitive and encouraging additional investment.

Also Read: British Airways, EcoCeres Expand SAF Partnership to Cut 198,000 Tonnes of Emissions

By joining SAFFA Fund I, Turkish Airlines is positioning itself to benefit from future fuel supply while supporting the expansion of sustainable aviation infrastructure. The investment also strengthens Türkiye's presence in the global SAF market and demonstrates how airlines are increasingly using capital investments to accelerate the industry's journey toward lower-carbon air travel.

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Source: ESG NEWS