FedEx’s largest SAF deal to date: Over 3 million blended gallons of sustainable aviation fuel secured for use at LAX over one year.
Strategic emissions reduction: SAF will cover ~20% of FedEx’s annual jet fuel use at LAX, advancing its 2040 carbon-neutral goal.
Market signal to SAF industry: FedEx reinforces demand for low-emissions aviation solutions, spotlighting the need for industry-wide scale-up.
FedEx has launched its most significant U.S. deployment of sustainable aviation fuel (SAF), securing over three million gallons of blended SAF from Neste for use at Los Angeles International Airport (LAX).
The agreement, which spans a one-year period, marks a milestone for both companies—and the air cargo sector—as FedEx commits to using fuel that contains at least 30% neat Neste MY Sustainable Aviation Fuel. This SAF purchase will account for nearly 20% of FedEx’s annual jet fuel consumption at LAX, making it the largest SAF procurement by a U.S. cargo airline at the airport to date.
“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 VP of Environmental Affairs at FedEx.
The deal underscores FedEx’s broader environmental strategy, which includes aircraft fleet modernization, flight planning optimization, and ongoing fuel conservation efforts. These initiatives enabled the company to reach a 30% reduction in aviation emissions intensity by fiscal year 2024—meeting a goal it first set in 2008.
“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,” said Richard Smith, COO, International, and CEO, Airline, FedEx. “While we know further growth of the SAF market is needed—alongside other innovations—we are proud to celebrate this milestone with our world-class air network.”
Neste, the SAF supplier, emphasized the strategic importance of the deal for global decarbonization in air logistics.
“FedEx is demonstrating how this industry can leverage available lower-emission solutions like SAF to reduce its environmental impact. We look forward to further strengthening our cooperation,” said Carl Nyberg, Senior VP, Commercial, Renewable Products at Neste.
This move builds on a history of collaboration between FedEx and industry partners to pioneer sustainable aviation solutions—including the 2018 ecoDemonstrator test flight with Boeing, which marked the first commercial airplane flight powered by 100% SAF in both engines.
As SAF supply continues to scale, FedEx is positioning itself as a frontrunner in sustainable air logistics—sending a strong signal to fuel producers, regulators, and investors alike.
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