This week, Air New Zealand announced its largest purchase of sustainable aviation fuel to date, securing the supply of 30 million liters (7.9 million US gallons). The sustainable aviation fuel (SAF) will be supplied by global leader Neste and will be uplifted to Air New Zealand aircraft at Los Angeles International Airport (LAX) and San Francisco International Airport (SFO) through to February 2026.
Air New Zealand is stepping up its SAF usage
On Wednesday, Air New Zealand said that this volume of SAF will reduce carbon emissions by up to 80% across its lifecycle compared to jet fuel made from fossil fuels. Neste will manufacture the SAF in Singapore from 100% renewable waste and residue raw materials such as used cooking oil and animal fat waste.
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Photo: Vincenzo Pace I Simple Flying
This purchase of 30 million liters represents 1.6% of Air New Zealand’s total fuel supply for FY25 (July 2024-June 2025) will be sustainable aviation fuel. The uplifts in Los Angeles and San Francisco will ensure the airline reaches its SAF target for the year and will be four times the volume of SAF used by Air New Zealand in 2024.
Photo: Neste
Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, said that while 1.6% is still a tiny proportion of the airline’s total fuel use, it’s four times more than it carried last year. Hannifin noted that Air New Zealand urgently needs to move away from its high reliance on fossil fuels as quickly as possible, and securing higher volumes of SAF year-on-year is critical.
“As an airline, we are targeting using 10% SAF by 2030. We’ve invested in two feasibility studies to understand if New Zealand production from feedstocks like woody biomass could become a reality, and we are delighted that it can be. We’re pulling every lever available to us because sitting on our hands is not an option. The climate crisis is worsening, and we are responsible for changing the course of action to protect our natural environment for future generations.”
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Air New Zealand believes the SAF momentum is growing
Airlines globally are becoming more frustrated with the lack of investment and development in the SAF industry. Many point out that this lack of SAF supply is holding back the pace of carbon emission reduction. Air New Zealand believes there is growing momentum around SAF policy and production, particularly in the Asia-Pacific region, which is incredibly gratifying for a South Pacific airline.
Photo: Toshi K | Shutterstock
Looking closer to home, the airline said a supporting SAF policy is needed in New Zealand, which may also encourage the development of local SAF production. Hannifin noted that with more governments overseas moving to enact low-carbon aviation policies, the airline would love to see similar support here to ensure New Zealand isn’t left behind in the move to lower-emission fuels.
Photo: Jordan Tan | Shutterstock
North America is a popular and important market for Air New Zealand, and in 2024, the airline celebrated 40 years of flying between Auckland Airport and Los Angeles International Airport. The airline operates its flights to Los Angeles using Boeing 777-300ERs, and the route to San Francisco is flown with a Boeing 787-9 Dreamliner.
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The carrier has operated more than 40,000 flights over the four-decade period, carrying over 12 million passengers.
Neste is a committed partner in reducing emissions
Neste Vice President of Renewable Aviation Business Alexander Kueper said that Neste is proud to support Air New Zealand’s efforts to increase its SAF usage as a key lever to reduce aviation emissions.
“This supply of our Neste MY Sustainable Aviation Fuel at Los Angeles and San Francisco airports is another great step up in our cooperation, and we are looking forward to continuing working together with Air New Zealand to reach their climate goals.”
The International Air Transport Association (IATA) said that in 2024, SAF production volumes reached 1.3 billion liters (343 million US gallons), double the 600 million liters produced in 2023, but just 0.3% of global jet fuel production. The production was significantly below previous estimates that projected 2024 SAF production of 1.9 billion liters, as key US producers delayed their ramp-up to the first half of 2025.
