The aviation industry is steadily navigating its way toward sustainability, and Air New Zealand has taken a decisive leap forward. By securing its largest-ever purchase of Sustainable Aviation Fuel (SAF)—30 million litres to be uplifted from Los Angeles and San Francisco through February 2026—the airline has reinforced its commitment to achieving decarbonization goals.
This strategic move comes at a time when aviation is under significant pressure to lower carbon emissions. Air New Zealand’s adoption of SAF signals a promising step not just for the company but for the wider aviation sector, showcasing the potential of innovative solutions to combat climate change.
The Power of SAF: Transforming Aviation Sustainability
SAF represents the aviation industry’s most effective tool to transition away from fossil fuels. Produced from 100% renewable waste and residue materials—such as used cooking oil and animal fat waste—it offers an up to 80% reduction in carbon emissions over its lifecycle compared to conventional jet fuel.
Neste, the global leader in renewable fuels, will manufacture the SAF for Air New Zealand at its Singapore facility. The partnership underscores the critical role of collaborative efforts in accelerating SAF adoption and underscores how innovation and scalability are reshaping aviation.
Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, highlighted the urgency of increasing SAF usage. While SAF currently accounts for just 1.6% of the airline’s total fuel use, this volume represents a fourfold increase compared to the previous year—a clear indication of the airline’s commitment to scaling its efforts.
Global SAF Momentum and Policy Support
The rise of SAF usage is part of a larger global trend. According to the International Air Transport Association (IATA), SAF production reached 1.3 billion litres in 2024, doubling the previous year’s output. However, despite this progress, SAF still accounts for just 0.3% of global jet fuel production. Scaling SAF adoption will require more than just investment; robust policy frameworks are critical to bridge the gap.
Hannifin’s call for stronger policy support in New Zealand reflects the need for governments to actively back low-carbon aviation initiatives. Many countries in the Asia-Pacific region are implementing such policies to foster domestic SAF production. For New Zealand, exploring local feedstocks such as woody biomass could open doors to homegrown solutions, aligning national goals with global decarbonization trends.
Decarbonizing the Future of Aviation
As Air New Zealand aims to achieve 10% SAF usage by 2030, its ambitious plan signals an inspiring roadmap for other airlines. This milestone is not just about replacing conventional jet fuel—it is about creating a scalable, sustainable aviation ecosystem.
Collaborative efforts with industry leaders like Neste play a pivotal role in this transformation. Neste’s Vice President of Renewable Aviation Business, Alexander Kueper, commended the partnership and emphasized its importance in advancing SAF availability. Such collaborations exemplify how shared expertise and commitment can propel the aviation sector toward net-zero emissions.
Why SAF Matters
SAF’s impact on decarbonization cannot be overstated. Its ability to reduce lifecycle emissions by up to 80% makes it an unparalleled solution for the aviation sector. As global scenarios suggest that 70–100% SAF usage will be required by 2050 to meet net-zero targets, its widespread adoption is no longer optional but imperative.
Renewable feedstocks like forestry waste, agricultural residues, and municipal solid waste underline SAF’s versatility and scalability. However, achieving these targets will necessitate overcoming production challenges, streamlining regulatory frameworks, and fostering public-private partnerships to expand SAF infrastructure.
Leading the Charge Toward a Sustainable Future
Air New Zealand’s latest SAF acquisition is not just a step forward for the airline but a beacon of hope for the industry. It demonstrates that ambitious goals, supported by innovative solutions and strategic investments, can help aviation decarbonize effectively.
This development resonates with VURDHAAN’s focus on driving sustainability within the aviation sector. As experts in areas like CORSIA, EU ETS, and Sustainable Aviation Fuels, we provide tailored guidance to help organizations meet regulatory requirements, improve sustainability performance, and adopt innovative practices. Our comprehensive approach ensures stakeholders are equipped to navigate the complex landscape of aviation decarbonization while aligning with global best practices.
A Call to Action
The time for transformative change in aviation is now. Air New Zealand’s example highlights how airlines can play a critical role in advancing sustainability. By embracing SAF, fostering policy advocacy, and exploring innovative solutions, the aviation industry can lead the global push toward a net-zero future.
The journey ahead is not without its challenges, but with bold commitments and collaborative efforts, decarbonization is within reach. Air New Zealand’s move is a reminder that sustainability is not just a responsibility—it is an opportunity to redefine the future of aviation.