Abstract: In the last few years, governments all around the world have agreed upon migrating towards carbon-neutral economies as a strategy for restraining the effects of climate change. A major obstacle limiting this achievement is greenhouse gases emissions, for which the aviation sector is a key contributor because of its dependence on fossil fuels. As an alternative, biofuels with similar characteristics to current fossil-fuels and fully compatible with the existing petroleum infrastructure (i.e., drop-in biofuels) are being developed. In this regard, microalgae are a promising feedstock thanks to, among other aspects, their potential for lipid accumulation. This review outlines the development status, opportunities, and challenges of different technologies that are capable of or applicable to transform microalgae into aviation fuels. To this effect, a baseline of the existing jet fuels and the requirements for potential aviation biofuels is initially presented. Then, microalgae production and valorization techniques are discussed with an emphasis on the thermochemical pathways. Finally, an assessment of the present techno-economic feasibility of microalgae-derived aviation fuels is discussed, along with the authors’ point of view on the suitability of these techniques. Further developments are needed to reduce the costs of cultivation and harvesting of microalgae, and a biorefinery approach might improve the economics of the overall process. In addition, while each of the conversion routes described has its advantages and drawbacks, they converge upon the need of optimizing the deoxygenation techniques and the proportion of the suitable type of hydrocarbons that match fuel requirements.