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Travel Radar - Aviation News > News > Aviation > Airline Economics > FedEx and Neste Launch Sustainable Aviation Fuel Initiative
Airline EconomicsAirlinesAviation

FedEx and Neste Launch Sustainable Aviation Fuel Initiative

Harrison Minihane
Last updated: 2 June 2025 15:31
By Harrison Minihane 3 Min Read
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A Photo of a Departing FedEx Airplane
Departing FedEx Airplane © Jeffry S.S.
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The world’s largest express cargo airline, FedEx, has teamed up with renewable fuel leader Neste to supply sustainable aviation fuel (SAF) at Los Angeles International Airport (LAX) in a bid to cut emissions.

Summary
Slashing CO2 emissionsDriving innovationA little more about FedEx
Close Up Shot of a FedEx Aircraft
Close Up Shot of a FedEx Aircraft © Lee Mills

Slashing CO2 emissions

Announced on May 20, FedEx has marked its first significant SAF deployment in the United States. Along with this, it will also be the largest SAF purchase by a U.S. cargo airline at LAX. This strongly supports FedEx’s goal of becoming carbon-neutral by the year 2040 and is a huge step in the aviation industry towards cutting emissions.

Neste will supply FedEx with 8,800 metric tons of blended SAF over the course of a year, starting in May 2025. Containing at least 30% neat SAF from renewable waste like animal fat and cooking oil, it will cover around 20% of FedEx’s jet fuel use at LAX. Annually, this deal could go as far as cutting 25,000 metric tons of CO2.

In a press release, Karen Blanks Ellis, chief sustainability officer and vice president of Environmental Affairs, FedEx said:

“Our aviation network represents the largest amount of FedEx fuel use globally and, as a result, is our biggest opportunity to drive down emissions. As we work toward our goal of carbon-neural operations by 2040, we need the SAF market to continue to grow to meet industry demand.”

Driving innovation

Finland-based Neste is currently the world’s top SAF producer and has certification for up to 50% blending with other conventional jet fuels. Aviation currently contributes approximately 3% of global CO2 emissions but all in the industry are hoping that this deal can be a further driving force behind change and innovation.

Senior Vice President of Commercial and Renewable Products at Neste, Carl Nyberg said:

“FedEx is demonstrating how the air cargo industry can leverage available lower-emission solutions like SAF to reduce its environmental impact”

Despite these impressive strides in turning the aviation industry green, SAF still currently costs between $2.50 and $3.50 per gallon, whereas fossil fuels are around $2, highlighting the need for further investment and scaling to help make it easier for all in the aviation industry to adopt.

A photo of a Rainbow behind a FedEx Cargo Airplane
Rainbow behind a FedEx Cargo Airplane © Janam Parikh

A little more about FedEx

Founded in 1971, FedEx is the world’s largest express cargo airline, operating in over 220 countries. Boasting a fleet of over 700 aircraft, it prides itself on delivering time-sensitive shipments globally.

How far do you think this will go to integrate SAF in aviation further? Let us know down below!

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Harrison Minihane
By Harrison Minihane
Aviation Reporter - With a keen eye for detail and a passion for air-travel, Harrison brings timely and insightful news to aviation enthusiasts and professionals alike as an Aviation Reporter
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