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FedEx secures over three million gallons of sustainable aviation fuel from Neste

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FedEx secures over three million gallons of sustainable aviation fuel from Neste
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Sriram Krishnasamy Executive Vice President and Chief Transformation Officer, FedEx Corporation President and CEO, FedEx Dataworks | FedEx

FedEx has announced a significant agreement with Neste, a leading producer of sustainable aviation fuel (SAF) and renewable diesel. The deal secures more than three million gallons of blended SAF for delivery at Los Angeles International Airport (LAX), marking the largest SAF purchase by a U.S. cargo airline at this location.

"Procuring SAF is an important component of our aviation emissions-reduction strategy in the coming years, and we are pleased to have executed a deal with Neste to begin using this fuel in our air operations," said Karen Blanks Ellis, chief sustainability officer and vice president of Environmental Affairs at FedEx. She emphasized the role of their aviation network as the largest contributor to FedEx's global fuel use, presenting a major opportunity to reduce emissions.

Richard Smith, chief operating officer, International, and CEO, Airline at FedEx added: "As the world’s preeminent express transportation company, our initial U.S. deployment of this fuel advances our sustainability goals and bolsters the aviation industry’s efforts to source and use more SAF."

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Carl Nyberg from Neste expressed excitement about working with FedEx: "Neste is excited to work with FedEx and support their ambitious goal of reaching carbon-neutral operations by 2040 with our SAF."

The initiative builds on FedEx's previous efforts in sustainable aviation technologies. In collaboration with Boeing through the ecoDemonstrator program, they conducted the first commercial airplane flight using 100% SAF in both engines in 2018. Alongside procuring SAF, FedEx continues improving efficiency through aircraft fleet modernization and other measures aimed at reducing fuel consumption.

Sustainable aviation fuel is highlighted as a more environmentally friendly alternative due to its lower emissions during production compared to conventional jet fuels. Despite its benefits, SAF accounted for less than 1% of global jet fuel production in 2024. As such, FedEx remains committed to advocating for expanded production.

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