Singapore To Introduce Sustainable Aviation Fuel Levy In 2026, Raising Costs For Travellers

Personal Finance
12 Nov 2025 • 5:26 PM MYT
RinggitPlus
RinggitPlus

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Passengers departing from Singapore’s Changi Airport will begin paying a new levy from October 2026 to support the use of sustainable aviation fuel (SAF). The Civil Aviation Authority of Singapore (CAAS) said the charge will range from SGD1 to SGD41.60 per passenger, depending on destination and travel class.

The levy will apply to tickets sold from 1 April 2026, for flights departing from 1 October that year. The additional fee will appear as a separate line on air tickets, and travellers on longer routes or in higher cabin classes will pay more.

Levy Rates By Destination And Cabin Class

CAAS has divided destinations into four geographical bands. Passengers travelling within Southeast Asia will pay the lowest amount, while those heading to the Americas will pay the highest.

Levy for passengers (SGD)

CAAS said travellers to Bangkok will pay SGD1 (about RM3.20) in economy or SGD4 in business class, while those heading to Tokyo will pay SGD2.80 and SGD11.20 respectively. Flights to London will see levies of SGD6.40 and SGD25.60 , while trips to New York will cost SGD10.40 and SGD41.60 .

These rates are lower than estimates made in 2024, when economy passengers were expected to pay up to SGD16 for long-haul flights. CAAS said prices of SAF have since moderated, allowing for a smaller surcharge.

When the Levy Will Take Effect

The rollout will give airlines and travellers time to prepare. The levy will not apply to passengers transiting through Singapore, nor to training, humanitarian, or charitable flights.

Tickets issued before April 2026 will not include the levy, even if travel occurs after October that year. The rates will remain fixed “for a few years” as Singapore targets having 1% of all jet fuel at Changi and Seletar airports derived from sustainable sources.

By 2030, that share is expected to rise to between 3% and 5%, depending on fuel availability and market conditions.

Existing Passenger Fees at Changi

The new SAF levy will be added on top of Singapore’s existing departure charges, which are already scheduled to rise over the next few years.

Existing departing passenger fees (SGD)

This means that by 2026, an economy passenger flying from Singapore to New York will pay a total of SGD75.60 in fees, while a business or first-class passenger will pay SGD106.80.

CAAS said these increases are needed to fund airport expansion projects and to offset rising operational costs such as energy and labour.

Implications For Malaysian Travellers

For Malaysians who often travel through Singapore, especially on long-haul routes, the new levy could mean slightly higher airfares. Many passengers from Johor and Kuala Lumpur use Changi Airport for international flights, particularly to destinations in Europe and North America that may not have direct connections from Malaysian airports.

For example, a traveller flying from Johor Bahru to Changi and onwards to London in economy class would face an additional SGD6.40 levy on top of Singapore’s standard fees. Business-class passengers on the same route would pay SGD25.60 more.

Although the levy itself is modest, it may make Singapore flights marginally more expensive compared with similar routes departing from Kuala Lumpur International Airport (KLIA). Airlines operating connecting flights between Malaysia and Singapore could also adjust their ticket pricing to reflect the higher overall cost.

According to regional aviation analysts, Malaysia may eventually consider adopting comparable measures, as countries face increasing pressure to align with global carbon-reduction targets under the International Civil Aviation Organization (ICAO).

Travellers looking to manage higher airfares can explore credit cards that offer air miles and travel perks to offset travel costs.

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