The two companies pledged to identify, evaluate and invest in projects supporting scaling of Saf production towards 2030 and beyond.

“The production and distribution of affordable Saf at scale requires an unprecedented cross-sectoral approach,” Airbus president Asia-Pacific Anand Stanley said.

Saf can be produced from sources including farm and forestry waste, animal fats, vegetable oils and municipal solid waste.

“Saf remains the most important lever for Cathay and the wider aviation industry to drive toward our common decarbonisation goals,” Cathay chief operations and service delivery officer Alex McGowan said.

An Iata leader suggested other sectors including banks and insurers often expected airlines to bear most costs for switching to Saf.

“Our industry has never had a net profit margin in excess of 5%, ever,” Iata chief economist Dr Marie Owens Thomsen said.

A short time later she told a finance and investment panel with bankers: “I’m still not hearing the sharing element.”

She added: “Why is it normal that banks need to protect their proft margins but it’s not normal for airlines to protect their profit margins? No offence to the banks.”

The symposium was hosting numerous speakers from outside the airline industry.

Abdullah Omair, director corporate sustainability for oil company Aramco, said Saf alone may not be a panacea.

“Currently Saf can cut emissions by up to 80% but still needs to be blended with conventional jet fuel by 50%. Therefore, Saf needs support.”

He said jet fuel consumption this year passed pre-pandemic peaks.

“The world’s population needs to fly and demand for flights is expected to grow.”

He said in addition to Saf, the world needed lower-carbon aviation fuel (Lcaf) and carbon dioxide removal technologies.

Imair said Lcaf referred to fossil-based fuels with a reduced “life cycle”.

Life cycle in this context took account of emissions from extraction, processing, transport, refining, distribution and combustion.

“Lcaf provides a pragmatic bridge,” he added.

He said Lcaf could cut 10% of emissions at scale using existing infrastructure at a lower cost and lead time.

In July, a paper Qatar presented to the International Civil Aviation Organisation also discussed the lower-carbon fuel.

The paper said fuel suppliers would need to invest US$50 billion ($87b) for Lcaf to reach an estimated 7% aviation energy use by 2050.

Iata on Tuesday said new data showed passenger load factor (PLF) up year-on-year in August in every continent except North America.

PLF is the percentage of available seating capacity filled with passengers.

The World Sustainability Symposium continues in Hong Kong on Wednesday.

John Weekes is a business journalist covering aviation. He has previously covered consumer affairs, crime, politics and courts.

The Herald travelled to Hong Kong courtesy of Iata and Cathay Pacific.