FedEx Corp. (NYSE: FDX) has entered into a landmark agreement with Neste, a global leader in the production of sustainable aviation fuel (SAF) and renewable diesel, to supply over three million gallons of blended SAF to Los Angeles International Airport (LAX). This marks FedEx’s most significant SAF deployment in the U.S. to date and builds on years of fuel efficiency improvements across its air operations.
Under the agreement, FedEx will receive a blended fuel product containing at least 30% neat Neste MY Sustainable Aviation Fuel. The SAF will supply approximately 20% of FedEx’s annual jet fuel consumption at LAX, representing the largest SAF purchase by a U.S. cargo airline at the airport so far. Fuel deliveries began earlier this month and will continue over the next year.
“Integrating SAF into our operations is a critical step in reducing aviation-related emissions,” said Karen Blanks Ellis, Vice President of Environmental Affairs and Chief Sustainability Officer at FedEx. “Given that our air network accounts for the majority of our fuel use globally, it represents the greatest opportunity to lower our carbon footprint. This agreement with Neste moves us closer to our goal of achieving carbon-neutral operations by 2040, but scaling SAF production will be essential to meeting broader industry needs.”
Richard Smith, Chief Operating Officer, International, and CEO of FedEx Express, added, “As the world’s leading express transportation provider, this initial U.S. deployment of SAF supports both our own environmental goals and the broader effort to expand SAF usage across the aviation sector. While more progress is needed to grow the SAF market and adopt other innovations, this milestone reflects a meaningful step forward.”
Carl Nyberg, Senior Vice President of Commercial, Renewable Products at Neste, highlighted the significance of the partnership: “We’re proud to support FedEx on its journey to carbon neutrality. Air cargo plays a vital role in global logistics, and this initiative shows how the sector can adopt lower-emission solutions like SAF to make a real impact. We look forward to building on this collaboration.”
This SAF purchase reflects FedEx’s long-standing commitment to sustainable aviation innovation. The company has partnered with Boeing on programs like the ecoDemonstrator, which included the first-ever commercial aircraft flight powered entirely by SAF in both engines in 2018. Beyond fuel procurement, FedEx is improving operational efficiency through aircraft fleet upgrades, fuel conservation programs, and enhanced flight planning. These efforts contributed to a 30% reduction in aviation emissions intensity by fiscal year 2024, relative to a 2005 baseline—a key milestone tied to goals set in 2008.
