• Turkish Airlines has joined SAFFA Fund I, an investment vehicle focused on expanding sustainable aviation fuel production.
• Airbus serves as the fund’s anchor investor, alongside airlines, financial institutions and other aviation stakeholders.
• The investment gives Turkish Airlines closer exposure to SAF projects, feedstock development and emerging production technologies.

Turkish Airlines has invested in an Airbus-backed fund designed to expand sustainable aviation fuel production and strengthen long-term supply across the global aviation industry.

The carrier signed an agreement to participate in SAFFA Fund I, LP, which is managed by Burnham Sterling Asset Management. The fund directs capital toward sustainable aviation fuel, or SAF, projects that have reached technological maturity.

For Turkish Airlines, the investment extends beyond a financial commitment. It provides the company with closer access to projects shaping future fuel supply, production technology and feedstock development.

The move also supports the airline’s wider strategy on growth, carbon reduction and supply chain security.

Fund targets scalable SAF production

SAFFA Fund was established in December 2023 to increase SAF production capacity and support the aviation sector’s decarbonisation targets.

The fund seeks to build a diversified portfolio across technologies and geographical markets. This structure is intended to spread project risk while supporting several pathways for producing lower-carbon aviation fuel.

Airbus serves as the anchor investor. Other participants include airlines, aviation groups and global financial institutions.

SAF is viewed as one of the industry’s most practical near-term tools for reducing aviation emissions. It can be used within existing aircraft and fuel infrastructure, although global production remains limited.

Aviation companies are therefore moving further upstream. Airlines and manufacturers are investing directly in projects to secure supply, influence development and reduce exposure to future shortages.

Turkish Airlines’ participation reflects that shift. It places the carrier closer to investment decisions that could influence production volumes, technology choices and regional supply chains.

Investment supports supply security

The airline said its involvement would support access to SAF while strengthening collaboration with Airbus on sustainability and fuel security.

“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,” said Levent Konukcu, deputy general manager of Turkish Airlines. “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.”

The investment is significant for a carrier operating one of the world’s broadest international networks. Access to reliable SAF volumes will become increasingly important as governments introduce stricter aviation climate rules.

Airlines may also face greater pressure from corporate customers seeking lower-emission business travel options. Investors are likely to scrutinise whether carriers have credible plans to source SAF at scale and manage the related cost exposure.

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Capital moves closer to production assets

Burnham Sterling said Turkish Airlines’ participation expands the financial base supporting the fund’s investment strategy.

“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,” said Michael Dickey Morgan, Executive Managing Director of Burnham Sterling Asset Management LLC. “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.”

For investors, the fund offers exposure to an emerging infrastructure and energy asset class. However, SAF projects still face high production costs, feedstock constraints and uncertain long-term economics.

Policy support will remain central. Mandates, tax incentives and carbon pricing mechanisms can help narrow the cost gap between SAF and conventional jet fuel.

Airlines that secure early access may be better positioned to meet future blending requirements. They may also reduce procurement risk as competition for limited volumes increases.

Turkish Airlines’ investment shows how aviation decarbonisation is moving from voluntary fuel purchases toward direct capital participation. The industry’s transition will depend on whether funds such as SAFFA can convert airline demand into commercially viable production across multiple regions.

For Türkiye, the decision also strengthens its national carrier’s role in the global SAF market. More broadly, it adds another major airline to the group of companies financing the fuel infrastructure needed to support aviation’s climate targets.