Aviation biofuels are promising to reduce carbon emissions in the aviation sector. However, emerging concerns over biofuels indicate a need for sustainability analyses that take into consideration the context around biofuel production. Here, we present a novel ex-ante sustainability analysis of production alternatives for aviation biofuel in Southeast Brazil. Considering local stakeholders’ concerns, the analysis is focused on climate change, commercial acceptability, efficiency, energy security, investment security, profitability, social development, and soil sustainability. By identifying tensions between production alternatives and these sustainability aspects, we discuss opportunities for further developments, such as sugarcane ethanol-to-jet production in the short term, and in-house production of hydrogen and power with renewable energy. Additionally, producer–operator partnerships and opening the decision-making to stakeholder participation are suggested to stimulate social cohesion, and reconcile diverging interests with biobased production. Analyzing sustainability with consideration of the local context can contribute to identify opportunities for more sustainable decarbonization alternatives.