Air New Zealand has made its largest-ever purchase of sustainable aviation fuel (SAF), securing over 30 million litres to reduce carbon emissions. This bold move is part of the airline’s broader strategy to cut its environmental impact.
SAF can reduce carbon emissions by up to 80% compared to traditional jet fuel made from fossil fuels.
Neste produces the SAF in Singapore using 100% renewable waste materials like animal fat and used cooking oil. Air New Zealand will uplift the fuel from Los Angeles and San Francisco airports until February 2026.
The Air New Zealand SAF purchase helps the airline achieve its SAF target for fiscal year 2025, with SAF now accounting for 1.6% of the total fuel supply. Kiri Hannifin noted that while SAF use remains small, it has quadrupled compared to last year.
Air New Zealand’s Commitment to Sustainable Aviation
By 2030, Air New Zealand plans to use 10% SAF. The airline has already invested in two feasibility studies to explore the potential for producing SAF from local feedstocks, such as woody biomass (plant-based material that can be converted into energy).
Kiri Hannifin highlighted the urgency of addressing climate change, stating,
“The climate crisis is worsening, and we are responsible for changing the course of action to protect our natural environment for future generations.
Like all airlines, we urgently need to move away from our high reliance on fossil fuels as quickly as we can. Securing year-on-year higher volumes of SAF is critical.”
In addition to increasing its SAF supply, Air New Zealand is also working on innovative solutions for reducing aviation emissions in the long term. This includes a partnership with Beta Technologies, a Vermont-based company, to introduce the Alia CTOL, a zero-emission electric aircraft powered entirely by electricity. Designed initially for cargo transport, it will help reduce reliance on fossil fuels while offering the potential for future zero-emission passenger flights. The aircraft, expected to enter service in 2026 for the New Zealand Post, will transport goods between the North and South Islands.
The airline’s SAF purchase is part of a broader trend in the industry. The International Air Transport Association (IATA) reported that SAF production reached 1.3 billion litres globally in 2024, doubling from the previous year. While SAF accounted for just 0.3% of global jet fuel production in 2024, industry leaders like Neste are expanding their operations, with plans to increase production significantly in the coming years.
