FedEx Corp. has begun receiving deliveries of sustainable aviation fuel at Los Angeles International Airport under a landmark agreement with Neste, marking the express cargo airline’s first large-scale US SAF deployment.

The year-long deal, announced on May 20, secures more than 3 million gallons of blended SAF, comprising at least 30 percent neat Neste MY Sustainable Aviation Fuel.

The fuel will supply roughly 20 percent of FedEx’s annual jet fuel consumption at LAX, making it the largest SAF purchase to date by a US cargo airline at the airport, the company said.

Step Toward 2040 Carbon-Neutral Goal

“Procuring SAF is an important component of our aviation emissions-reduction strategy,” said Karen Blanks Ellis, FedEx’s chief sustainability officer. “As we work toward our goal of carbon-neutral operations by 2040, we need the SAF market to continue to grow to meet industry demand.”

FedEx said its aviation network accounts for the majority of its global fuel use, making it a primary target for emissions-cutting initiatives. Deliveries of the blended SAF to FedEx began earlier this month and are expected to continue for the next 12 months.

Boost to US SAF Market

Neste, a Finnish company and the world’s leading producer of SAF and renewable diesel, hailed the deal as an example of how the air cargo industry can adopt cleaner energy alternatives.

“Recognizing the important role of air cargo in the global economy, FedEx is demonstrating how this industry can leverage available lower-emission solutions like SAF,” said Carl Nyberg, senior vice president at Neste.

Neste’s SAF is made entirely from renewable waste and residue materials, including used cooking oil and animal fat waste. According to the company, its fuel reduces greenhouse gas emissions by up to 80 percent over its lifecycle compared to conventional jet fuel.

Building on Previous Sustainability Milestones

The agreement follows years of FedEx investments in sustainable aviation technologies, including its collaboration with Boeing on the 2018 ecoDemonstrator program — the first commercial aircraft flight to use 100 percent SAF in both engines.

FedEx has also implemented a range of efficiency initiatives, including fleet modernization and flight planning optimization. These efforts contributed to a 30 percent reduction in aviation emissions intensity by the end of fiscal year 2024, compared to a 2005 baseline.

SAF Still in Early Growth Phase

Despite such efforts, SAF accounted for less than 1 percent of global jet fuel production in 2024, underscoring the need for expanded production capacity and broader industry adoption.

“As the world’s preeminent express transportation company, our initial U.S. deployment of this fuel advances our sustainability goals,” said Richard Smith, chief operating officer, International, and CEO of FedEx Express. “While we know further growth of the SAF market is needed — alongside other innovations — we are proud to celebrate this milestone.”

FedEx reiterated its commitment to advocating for wider SAF availability, citing both its environmental potential and economic significance for the aviation industry.

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