Keynote Interview with Willie Walsh, Director General of IATA, at World Aviation Festival 2024: “Industry snapshot from IATA”.

 

At World Aviation Festival, Willie Walsh, Director General of IATA joined Henry Harteveldt on stage to discuss the state of the industry and the realistic cost of aviation’s transition to net zero.

Walsh contextualised the sustainability challenge against a positive assessment of demand, which sits at 3.5 per cent ahead of 2019 levels. He praised the agility and resilience of the industry both historically and during the pandemic, but highlighted ongoing geopolitical tensions as a significant challenge.

Speaking on the cost of sustainability, Walsh warned:

“The transition to net zero is going to be very expensive. I’ve been saying that for years. Politicians have tried to convince people that this is just going to be business as usual. It’s not going to happen. It’s going to be very complex, it’s going to take time, it’s going to take energy, and it’s going to take a hell of a lot of money.”

Walsh estimated that the cost difference between sustainable aviation fuel (SAF) and traditional kerosene from 2024 to 2050 would be approximately $4.7 trillion, an average of $174 billion a year. With the industry set to make a net profit of $30 billion this year and SAF the only viable short term solution, he admitted that the prospect is “frightening” and governments must create frameworks to incentivise SAF production like in the United States.

On a later panel at the event, David Neeleman, Founder & CEO, Breeze Airways challenged Walsh’s sustainable aviation fuel (SAF) position. The Breeze Airways Founder & CEO suggested that the estimated $174 billion annual cost to bridge the gap between SAF and traditional kerosene would be misplaced, arguing:

“[Aviation] can take away double the emissions we’re producing with a lot less money than you’re talking about.”

 

 

For more from onsite at World Aviation Festival 2024 see: