Turkish Airlines has agreed to invest in SAFFA Fund I, an investment vehicle created to accelerate the development and production of sustainable aviation fuel. The amount of the airline’s investment was not disclosed.
Burnham Sterling Asset Management manages the fund, which was established in December 2023. Airbus serves as its anchor investor, and the fund’s participants include aviation companies, financial institutions and other organizations supporting the expansion of sustainable aviation fuel infrastructure.
Sustainable aviation fuel, commonly known as SAF, is produced from renewable or lower-carbon feedstocks and can be used as an alternative to conventional jet fuel. It is intended to reduce aviation emissions over the fuel’s lifecycle while remaining compatible with existing aircraft and airport fueling infrastructure.
SAFFA invests in projects that have reached technological maturity and are positioned to increase commercial SAF production. Its portfolio is diversified across different production technologies and geographic markets to reduce reliance on any single process, feedstock or region.
Turkish Airlines said its participation will provide closer access to the investment, technology and feedstock projects shaping the SAF industry. The investment is also intended to improve the airline’s long-term fuel supply security as demand for lower-carbon aviation fuels increases.
The participation strengthens Turkish Airlines’ sustainability relationship with Airbus. It also places the carrier alongside other SAFFA participants working to expand production capacity and create more dependable sources of sustainable fuel for the global aviation market.
Existing SAFFA participants include Airbus, Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, CMA CGM, Mitsubishi HC Capital and Qantas Airways. The commitments from those eight partners total approximately $208 million.
Turkish Airlines believes international partnerships will be important for developing a commercially viable SAF ecosystem. Increasing production will require coordinated investment in feedstocks, refining technologies, infrastructure and long-term purchasing agreements.
The airline also sees the investment as part of its broader growth and supply-chain strategy. By participating directly in the fund, Turkish Airlines gains exposure to projects that may influence the future availability and cost of sustainable aviation fuel.
Founded in 1933, Turkish Airlines operates a fleet of 555 passenger and cargo aircraft. The carrier serves 358 destinations across 133 countries.
KEY QUOTES:
“With this investment in the SAFFA Fund we aim not only to contribute to the development of the sustainable aviation fuel ecosystem but also to maintain our active role in supporting innovative projects that shape the future of the industry.”
“The strong international collaborations established through the SAFFA Fund will enable us to reinforce our supply security and contribute to the transformation of the global aviation sector while supporting our access to sustainable aviation fuels.”
Levent Konukcu, Deputy General Manager of Turkish Airlines
“SAFFA Fund was built to channel capital into SAF projects across a mix of investments and geographies. Turkish Airlines’ investment adds scale to that strategy and evidences the confidence the Fund’s participants have in this asset class.”
“Turkish Airlines’ commitment to the SAFFA Fund is a strong signal that the world’s leading carriers see this transition as essential for the long term. We’re proud to help drive that progress forward.”
Michael Dickey Morgan, Executive Managing Director of Burnham Sterling Asset Management
