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Let’s be honest. If you’re reading this report you do not need a re-telling of the hard facts. You know that the aviation industry is going to be incredibly hard to decarbonise. You know that despite the seemingly insurmountable challenge ahead of us, the industry is committed to our 2050 net zero goal and many significant approaches are being explored. You know that if we do nothing, our current contribution of 2-3% to global emissions will increase to as much as 25% by 2050.
Most of all, you know the simple, inexorable fact: the world is already reeling from the climate crisis – record temperatures, heatwaves, floods, wildfires, ecosystem damage, loss of livelihoods and economic distress all threaten not just our future but the present as well.
The ship of considering whether to do anything about climate change has already sailed; the question now is how quickly we can decarbonise.
Of course, the question of what the industry can do is rife with controversy, speculation and divided opinions. Is net zero by 2050 realistic? Is it equitable for all? Do we have the money to make it happen? Will customers support it? Can we decarbonise at all without bankrupting airlines or dramatically increasing prices?
The pathways, too, are hotly contested. Only sustainable aviation fuel (SAF) is available at present as a significant lever to decarbonise. There, too, significant challenges remain. It is far more expensive than jet fuel; its availability is far too insignificant; and how to source the feedstocks and renewable energy required for production is unclear at best, and completely unfeasible at worst.
Other technologies – hydrogen, electric or hybrid versions of both – are years away from commercial entry despite significant movement and investment. Carbon offsets have lost their sheen and, in fact, have been decried as fraudulent and ineffective by multiple studies conducted over the past few years.
In such a scenario, an airline executive working in sustainability might be tempted to give in to hopelessness or despair. We attempt to provide an antidote to such pessimism. Yes, there are no easy solutions, and the path to decarbonisation is going to be hard. Yes, the impact of investments may not be seen for a few years. Yes, it’s hard to pass on the additional costs to customers while remaining competitive and profitable.
Our inaugural Sustainable Aviation Outlook report offers hope, reassurance, answers and some helpful suggestions along the way:
Better together: First of all, airlines must remember that sustainability is about cooperation, not competition. It is in the industry’s collective interest to decarbonise. The way forward is by recognising we’re in it together.
Learn what’s being done today: By surveying a selection of airlines that are investing significantly in sustainability, we want to show how your peers are going about the business of decarbonisation across five key categories: team structure; strategy; managing perceptions; sustainability initiatives; and budget and future outlook.
Incremental but immediate solutions: Even if you despair that there are no immediate solutions, there’s no reason to shy away from incremental approaches that add up. No SAF? No problem. Take a different approach to optimisation. Perhaps fleet renewal. Perhaps by investing in eco-piloting measures and technologies that can reduce hundreds of kgs of CO2 emissions per aircraft per day.
Start the work: Most of all, do not wait for the perfect solution. Your peers believe they can do something today. Believe in them, believe with them. Do not think 2050 is someone else’s problem. The work being done today will determine how quickly the industry can meet its net zero target.
Know where we stand: The first part of our report (with our partners Cirium and Envest) offers an industry overview in terms of how various regions and routes stack up in terms of relative and overall emissions.
Will decarbonising be hard?
Are airlines investing more and more in sustainability? Do airlines believe in the hard work of sustainability? 1 2 3 4 5
But do airlines nonetheless think they can get to net zero emissions?
Can something be done today?
Can something be done today without passing the costs on to customers?
Can something be done today that is not SAF, SAF and SAF?
Can something be done today that is economically beneficial to airlines?
Is it important for the entire company to believe in sustainability?
Is it essential to resist the urge to indulge in greenwashing?
While the aims of protecting the environment and the planet might appear grandiose, virtuous and self-satisfying, there’s a more pressing reason to decarbonise – aviation does not have a perpetual social licence to operate. We do not have to go too far back in time to realise this. When the world came to a standstill during the Covid-19 pandemic, flying was one of the first casualties and barely anyone grumbled about it. For many, flying is dispensable and we must have the humility to accept it and the perspicacity to preserve it.
Flying is magical. It makes the world a better, smaller place. It enables trade, commerce, cultural exchange, and experiences that cannot be replicated through books, films or photographs. Most of us who work in the industry do so for
the love of air travel and would do well to recognise the risks to it. The world today is increasingly conscious of carbon-intensive industries, and movements such as flight shaming are becoming mainstream.
Many companies are consciously cutting business travel – and travel overall as well. Some have instituted a “carbon budget” that must be adhered to. Many travellers are eschewing planes for trains. Shorthaul flights that can be replaced by trains have been nixed in France. Other countries might follow soon. The pandemic has already made remote work and meetings acceptable; the climate crisis might hasten it. Strict regulations in Europe on SAF and under the Emissions Trading Scheme will make flights more expensive in the years to come.
The threat to aviation is existential and we must recognise it as so. Decarbonisation is not an option but a necessity. We must do it not only because we care for the environment but also for the industry and for the love of flying. Airlines must seize whatever decarbonisation lever they can in the present as they plan for better solutions in the future. The reason is simple: if you do not start today at your own pace, you will be forced to do it in future in ways that will be far more damaging to your business. Do it today. For the planet. For your business. For the love of flying.
Shubhodeep Pal Chief Operating Officer, SimpliFlying shubhodeep@simpliflying.com
To gain a deeper understanding of how airlines are approaching sustainability, we conducted a comprehensive survey of 20 leading carriers from around the world, including major players such as Air France-KLM, British Airways, Lufthansa Group, All Nippon Airways, and Southwest Airlines. The survey covered five key areas: team structure, sustainability strategy, perception of sustainability and communications, sustainability initiatives, and budget and future outlook.
Our objective was to assess the current state of sustainability efforts within the airline industry, identify best practices and challenges, and provide insights into how carriers can effectively integrate sustainability into their business strategies. By examining these critical aspects of airline operations, we aimed to shed light on the industry's progress towards a more sustainable future and offer recommendations for further improvement.
The survey was taken by senior executives and sustainability leaders from each participating airline. The questions were designed to elicit detailed information about the carriers' sustainability policies, programs, and performance, as well as their plans for the future. By gathering data from the airlines mentioned above, we sought to capture a snapshot of the leading sustainability players in the industry.
Ultimately, our goal is to contribute to the ongoing dialogue around aviation sustainability and support airlines in their efforts to reduce their environmental impact while continuing to bring the magic of flying to millions across the globe.
1
Decarbonising aviation is going to be expensive. IATA estimates that the total cost will be in the range of $5 trillion This is a stark contrast to the industry’s current total R&D spending, which is about US$23 billion annually.
2
Fossil fuels aren’t going anywhere. The current airline fleet is expected to double by 2050 and will all run on (at best) a blend of SAF and regular jet fuel.
44,000 AIRCRAFT BY 2050 65%
3
IATA estimates that SAF’s contribution to achieving net zero by 2050 will be around 65%. (See chart) $5 TRILLION
5000 - 7000 NEW FACILITIES
IATA estimates thousands of new SAF facilities will be required for aviation by 2050. Each facility could cost upwards of $250m each.
5
4
However, an incredibly small amount of SAF is currently available. In 2024, even though SAF production is expected to triple to 1.875 billion litres (1.5Mt), it will account for only 0.53% of aviation’s fuel needs. 0.53%
For more insights, charts and figures, see: Understanding Sustainable Aviation in 40 Charts.
Many airlines are beginning to disavow carbon offsets which have proven controversial, and are instead focusing on carbon removal
The earliest commercial hydrogen flights are expected around 2026, with ZeroAvia and Universal Hydrogen currently testing retrofitted aircraft in the 20-40 passenger capacity range. (Airbus is also planning a commercial hydrogen aircraft but only by 2035.)
The earliest commercial electric flights are expected around 2028, most prominently with Heart Aerospace’s firstgeneration 30-seater battery electric-hybrid aircraft. 9 10
Operational efficiencies like eco-piloting measures, switching off APUs, single-engine taxi and greener infrastructure can contribute to ~10% of net zero targets for aviation.
Customer consensus is leaning towards decarbonisation. Many flyers are willing to fly less and pay more for flights that attempt to neutralise their emissions.
To learn more about the gamechangers in sustainable aviation, order a copy of our book “Sustainability in the Air”, featuring companies such as Heart Aerospace and ZeroAvia; and airlines such as JetBlue and Etihad.
“He who would learn to fly one day must first learn to stand and walk and run and climb and dance; one cannot fly into flying.”
In a recent analysis, Dan Rutherford of the International Council on Clean Transportation (ICCT) assesses the progress made by comparing the current state of the industry to four scenarios outlined in the ICCT's Aviation Vision 2050 report. He concludes that while some progress has been made, particularly in the European Union, the industry is still following the "Action" scenario (the least ambitious one), which falls short of the Paris Agreement goals. Without significant effort, aviation risks consuming a substantial portion of the global carbon budget and contributing to further warming.
There can be no mincing words here. We are staring at a daunting climb to net zero. Before we delve into the survey results, it's imperative to first grasp the industry's current landscape and take a hard look at the lay of the land. Where exactly does aviation stand right now in terms of emissions, fuel efficiency, and SAF adoption?
In order to examine the macro trends that shape this realm, we have sourced global industry data from our partners at Cirium and Envest on carbon emissions, intensity, efficiency, and SAF usage. This will illuminate the industry's present state and the path forward while underscoring the urgency of our collective actions.
North America and Europe dominate as Asia rises
Concentrations of power, concentration of emissions
SAF is rising, slowly
As one might anticipate, Europe and North America currently dominate the industry's carbon footprint, accounting for the lion's share of emissions and fuel consumption. However, this narrative is poised for a shift, as Asia rapidly gains traction, positioning itself to overtake its Western counterparts in the near future. Interestingly, a closer examination reveals that when the emissions of the top 10 most carbon-emitting airlines are counted, 80% of them are accounted for by North American and European airlines.
Unsurprisingly, the routes bearing the heaviest emissions burden are those serving global hubs of trade, finance, and commerce, such as Singapore, London, New York, Los Angeles, Dubai, and Hong Kong.
The adoption of SAF remains abysmally low, with Air-FranceKLM leading the charge at a meagre 0.6% of their overall fuel mix in 2022. On the procurement front, however, United Airlines stands out, having secured offtake agreements for nearly 3 billion gallons of SAF – a commitment that, while commendable, will materialise over an extended timeframe, potentially spanning a decade or more.
Pareto focus
It is evident that a concerted, globally coordinated effort is imperative to propel the industry towards its decarbonisation objectives. While the date might need further refining, the Pareto principle appears to hold true in this context, suggesting that a concentrated focus on key airlines, regions, and routes could significantly alter the industry's trajectory towards sustainability.
The necessity of global equity and inclusivity
The climate crisis is an indiscriminate force, and no region can be left behind in our collective pursuit of a net-zero future. The industry's efforts must be akin to a rising tide that lifts all ships equally, without prejudice towards wealth, funding, or geographic location. Wealthy nations and airlines that have contributed substantially to the current predicament must shoulder the responsibility of funding their less affluent counterparts.
Greater investment
Capital injection into climate technology and sustainable aviation solutions are imperative to bridge the funding gap and propel these innovations towards commercial viability at an unprecedented pace. Public-private partnerships, government incentives, and collaborative research initiatives must be leveraged to accelerate the development and deployment of game-changing technologies.
Multi-faceted approach
The industry’s efforts must encompass operational efficiency, technological advancements, and a diverse portfolio of sustainable fuel sources. While SAF remains a pivotal component of the solution, we must actively explore and invest in alternative pathways, feedstocks, and renewable energy sources to ensure a resilient and sustainable future for the aviation industry. This is suggested by Rutherford as well, who also suggests implementing broader sustainable aviation fuel mandates, developing more efficient aircraft, expanding carbon pricing, and considering additional measures such as demand management and carbon capture.
Top airlines in adopting SAF (2022/2023)
Source: Envest, Airline annual reports
"Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek."
– Barack Obama
So how can we actually go about the hard work of changing the industry in the most dramatic way since planes first started flying?
The answer is simple: We invest in people, in teams and in team structures that are true to the cause at hand. What this might look like varies from airline to airline and there are no right answers (yet). Only one thing is true – those truly serious about their sustainability efforts have established a sustainability function within their organisations.
Hybrid teams reign supreme
Staffing soars
The vast majority of airlines (80%) are adopting a hybrid team structure for their sustainability efforts, which combines a dedicated sustainability team with staff distributed across other functions. This approach allows for a core group of sustainability experts to drive the agenda, while also embedding sustainability responsibilities and mindsets throughout the organisation. In contrast, only 5% of airlines rely solely on a dedicated sustainability team, suggesting that a more integrated model is preferred.
Airlines are investing heavily in personnel. Given the early days of sustainability efforts, it’s striking that 60% of airlines surveyed have more than 10 full-time staff focused exclusively on sustainability, while another 35% have between 3-5 dedicated sustainability employees. This headcount is expected to grow rapidly, with 65% of airlines projecting they will have over 10 fulltime sustainability staff within the next year.
Chief Sustainability Officers enter the C-Suite
Leaders, not leader
The Chief Sustainability Officer (CSO) role is becoming a mainstay in airline leadership. While the CSO is the executive most often in charge of directing sustainability strategies (cited by 55% of respondents), many more airlines (65%) said they’d prefer having a CSO in charge. The prevalence of this top-level position demonstrates that sustainability is securing long-term commitment and resources from senior management and is no longer a pet side-project for teams.
Somewhat surprisingly, respondents felt that sustainability was too important an issue to be left to a single executive whether in the C-suite or elsewhere. Many respondents, in fact, suggest that the responsibility of their airline’s sustainability strategy should require the involvement of most top management. This suggests that sustainability is no longer viewed as a siloed initiative, but rather a strategic, cross-cutting priority that demands accountability and action from the entire leadership team.
Cross-functional collaboration will be essential
The prevalence of hybrid team models suggests airlines recognise that driving sustainability progress requires breaking down silos and engaging the entire organisation. Dedicated sustainability teams bring focus and expertise, but can't do it alone. Airlines should carefully design their sustainability organisation to foster ongoing cross-functional collaboration. The teams, skill sets, processes and culture needed to deliver sustainability goals should be embedded across all key functions, not confined to a specialist group.
Sustainability leadership must be empowered
The growing ranks of CSOs and the shifting perspectives on ideal sustainability leadership point to the increasing importance of this agenda. Airlines that haven't yet done so should strongly consider appointing a CSO to provide executive sustainability leadership. However, a CSO can't drive the sustainability agenda in isolation. Airlines must create clear mandates, decision-making authority and organisational linkages to ensure the CSO is empowered to drive change in partnership with other executives. As sustainability matures into a whole-business strategic priority, airlines should also consider explicitly adding it to the CEO's remit.
Invest in size but don’t forget skills and budget
For sustainability teams, at least. The trend toward larger full-time sustainability teams signals a recognition that delivering ambitious decarbonisation goals requires serious team power. The airlines surveyed appear to be scaling their sustainability organisations to match the magnitude of the challenge. However, headcount alone is not enough - airlines must also focus on building the right skill sets by recruiting seasoned sustainability professionals and upskilling existing staff. Importantly, sustainability teams must also be resourced with sufficient budgets to drive impact.
All hands on deck
While dedicated teams and executive leadership are critical, ultimately sustainability must seep through the organisation and become a part of its DNA. In the airline of the future, sustainability will be part of every employee's job description. Hence, airlines should invest in engaging and educating the entire workforce around the company's sustainability vision, goals and strategies.
"However beautiful the strategy, you should occasionally look at the results."
– Sir Winston Churchill
What makes for a great strategy? Is it a plan on a piece of paper? Or is it something more intangible, driven by a deep philosophical idea? Or perhaps it is both, a perfect amalgamation of a great idea given form as a concrete plan for progress or change. Of course, the work doesn’t stop at merely articulating the strategy – execution is critical. But the starting point matters too. So, for now, let’s look at how airlines are going about the business of defining their decarbonisation strategies.
Airlines have a plan for change
But…those plans are mostly unverified
Is 2050 the “comfortable” target?
Reporting ramps up
The majority of airlines (60%) already have a net zero roadmap in place, while another 20% are actively working on developing one. This widespread adoption of net zero targets signals that the industry is aligning around the global imperative to decarbonise.
While setting net zero goals is an important first step, only 42% of airlines have had their targets officially approved by the Science Based Targets initiative (SBTi) or a similar organisation. As a result, the credibility and alignment of airline net zero goals with climate science is still a work in progress. (Earlier this year, in a move calculated to shake up those paying mere lip service to sustainability, SBTi dropped 119 companies from its sustainability rankings for failing to submit concrete targets.)
Among airlines with a net zero target, the vast majority are aiming to reach net zero by 2050. In fact, even industry-wide, only two airlines (Alaska Airlines and JetBlue) have set a more ambitious 2040 target. The convergence around 2050 suggests the industry may be merely adhering to the IATA net zero commitment. The lack of more aggressive targets raises questions about whether airlines are prioritising near-term action enough to effect change.
80% of airlines surveyed now publish an annual sustainability or ESG report, with another 10% planning to start. This widespread reporting practice suggests airlines recognise the importance of transparency and disclosure to their sustainability journey. However, the 10% not yet reporting on sustainability may face growing pressure from investors and stakeholders to do so.
Even beyond our survey, it's clear that many airlines need to develop concrete net zero plans and accelerate their decarbonisation strategy. All airlines should prioritise developing a comprehensive net zero plan with clear near-term and long-term emissions reduction targets. Those without a plan must act quickly to avoid falling further behind the industry curve.
Validate targets to unlock credibility
A plan on paper isn’t enough. Airlines should seek to have their emissions reduction targets validated by the SBTi or a similar organisation. This independent, third-party seal of approval can increase the credibility and robustness of airline net zero plans in the eyes of investors, customers, and regulators. Even those already aiming for net zero by 2050 should pursue official validation.
Strategise and execute faster
While the convergence around the 2050 net zero target is almost a given at this time, airlines should consider setting more ambitious near-term targets as well. Seeking inspiration from airlines aiming for earlier milestones like 2040 can help spur sustainability plans as a key differentiator for customers. It could also enable the rapid deployment of SAF, next-generation electric and hydrogen propulsion, and operational efficiencies needed to meet the net zero goal.
Consider quarterly reporting
Airlines may want to consider reporting sustainability progress to external stakeholders with the same quarterly cadence that many already use for internal updates. More frequent disclosure can reassure customers, investors and other stakeholders that airlines are managing their targets proactively. It may also be simpler to align internal and external reporting processes.
Have you published your Net Zero Roadmap?
Has your net zero roadmap been approved by SBTi or any similar organisation?
How frequently do you report sustainability metrics to stakeholders?
"The single biggest problem in communication is the illusion that it has taken place.”
– George Bernard Shaw
A telling marker of a company’s agenda is how far and how deep its key messages have seeped into the organisation. For a challenge like decarbonisation, this is doubly important. The road to net zero will require organisation-wide change and, as a result, organisation-wide involvement.
The implications are critical. Employees must not only buy into the broad objective but also actively engage with it. The organisation itself must engage with the task at hand to ensure that its activities are measured and communicated with key stakeholders at all levels with regular frequency. This will require humility, constant introspection and, most of all, an honest reckoning with the challenge ahead.
Measurement matters
Awareness begins at home
The vast majority of airlines (85%) report measuring the impact of their sustainability initiatives, suggesting a growing focus on data-driven accountability. Only 15% do not yet quantify the outcomes of their sustainability efforts. This widespread adoption of impact measurement bodes well for the industry's ability to track and communicate progress toward climate goals.
Airlines are actively driving sustainability awareness among employees through a variety of channels. Trainings and seminars are the most common tactic (85%), followed by ongoing awareness campaigns (70%) and newsletters (60%). This multipronged approach to employee education and engagement lays a strong foundation for embedding sustainability across airline culture and operations.
Cautious communications
Stakeholder expectations expected to grow
60% of airlines focus their external sustainability communications primarily on sharing major initiatives and milestones, while 25% always proactively disclose their progress. 10% only occasionally communicate about their efforts, and 5% do not discuss sustainability publicly at all. This relatively conservative approach likely reflects the challenges of rising greenwashing scepticism.
Airlines perceive sustainability as highly important to most of their key stakeholders. Interestingly, suppliers are a relative outlier, with 60% seeing sustainability as only somewhat important to this audience. This stakeholder pressure underscores the growing business imperative of sustainability strategy and disclosure.
Collaborative climate dialogue is growing
90% of airlines engage with climate groups and NGOs in some capacity, with joint workshops/projects and partnerships being the most common avenues (55% each). 45% participate in meetings with these stakeholders. Only 10% do not engage at all. This broad-based dialogue and collaboration with sustainability experts and advocates is an encouraging sign that airlines are open to external input and partnership as they work to decarbonise.
Standardise measurement and reporting
With impact measurement now prevalent across the industry, airlines should align around shared metrics and methodologies to enable comparative benchmarking and aggregation of results. Referring to IATA’s Airline Sustainability Reporting Handbook would be a great start and should become common practice. This can help airlines learn from peers and build a clearer picture of sector-wide progress. For the minority not yet measuring sustainability impact, closing this gap should be an urgent priority.
Enlist employees as advocates
The next frontier for airlines should be moving from education to activation by creating more opportunities for staff to directly participate in and advocate for the airline's sustainability agenda. (Consider, for example, Wizz Air which has launched a Sustainability Ambassador programme .) Offering sustainability innovation incentives, "green team" volunteer programs, and avenues for frontline workers to suggest operational efficiency improvements can help turn employees into an airline's most powerful sustainability champions.
Avoid greenwashing, not communications
The risk of greenwashing backlash is real as airlines seek to communicate their sustainability credentials. But retreating into silence risks ceding the narrative to critics. The antidote to greenwashing is not less communication, but more authentic disclosure backed by credible action and engaging storytelling. Airlines should focus on transparently sharing sustainability challenges alongside successes, setting and reporting against science-based targets, and elevating customer and employee voices as third-party validators.
Engage, don’t alienate climate experts
The widespread engagement between airlines and climate NGOs is a promising platform to build on. Airlines should look for more opportunities to tap the expertise and credibility of environmental groups when developing and validating their sustainability strategies. Transformative industry-NGO cooperation can help rebrand aviation as part of the climate solution.
How do you ensure sustainability awareness within the organisation?
Do you publicly communicate about the sustainability initiatives you are undertaking?
Have the claims around corporate greenwashing made you more cautious about talking about environmental initiatives?
“By–
failing to prepare, you are preparing to fail.”
Benjamin Franklin
The temptation to hold out for a perfect sustainability solution is understandable, but ultimately misguided. Airlines must resist the allure of this chimera and instead embrace the hard, unglamorous work of incremental progress. This transformation cannot be achieved by any single airline working in isolation – it demands collaboration and collective action across the entire industry.
Remember: the responsibility for this transformation does not rest on the shoulders of any single airline. The true measure of success will not be the isolated achievement of one carrier's net zero ambitions, but the collective transformation of the industry.
Operational efficiencies are growing in importance
Synthetic fuels are widely viewed as future saviours
Airlines are investing heavily in a wide range of infrastructural and operational efficiencies to reduce their environmental footprint. Eco-piloting measures lead the pack with 100% adoption, followed closely by waste management and singleuse plastic reduction (90% each), circular resource use and weight reduction (85% each). Other popular initiatives include sustainable catering (75%), renewable energy for buildings and ground equipment (75% and 70%), and noise reduction (70%). Emerging areas like contrails management and AI/ML are also gaining traction.
70% of airlines believe synthetic or e-fuels have the most potential to become the dominant sustainable aviation fuel of the future (see our comprehensive report on SAF pathways). Biofuels come in a distant second at 15%, with hydrogen, hybridelectric and other options garnering just 5% each. This points to a growing consensus around the key role of power-to-liquid fuels in aviation's long-term decarbonisation.
Few plans for next-generation technologies
Carbon offsets are still popular
Half of the airlines surveyed are not currently investing in any next-generation aircraft technologies. This suggests that while some early movers are placing bets on revolutionary propulsion, much of the industry remains in wait-and-see mode.
Despite the growing controversy around offsets, the vast majority of airlines surveyed (80%) offer voluntary carbon offset options to customers, with another 5% planning to do so in the future. Only 10% have no plans to provide passenger offsetting. Among those that do offer offsets, a separate landing page is the most common avenue (60%), followed by post-booking emails (45%) and messages on the airline website (35%).
SAF uptake poised to grow steadily
Perhaps the one result we didn’t need the survey for! As of 2023, most airlines are using little to no sustainable aviation fuel, with 40% in the 0-0.5% range and 40% in the 0.5-1% range. However, the outlook for 2024 shows a significant expected jump, with half of all airlines surveyed planning to use 1-5% SAF in their operations. This indicates that many carriers are on the cusp of scaling SAF from experiments to meaningful proportions of their total fuel mix.
In the absence of dramatic decarbonisation levers, airlines should carefully monitor and quantify the impacts of existing efficiency initiatives to identify the highest ROI initiatives. Sharing best practices across the industry and standardising metrics can help optimise these efforts. As efficiency gains reach their limits, airlines will need to pivot to more transformative investments.
Collaborate to grow the SAF pie
The anticipated rapid growth of airline SAF uptake in the next year is an encouraging trend that will need to accelerate even further for the industry to meet its net zero goals. But competing for limited SAF supplies is a zero-sum game. Airlines should champion sector-wide efforts to boost SAF production volumes and infrastructure through policy advocacy, joint offtake agreements, and value chain partnerships. In addition, given the widespread belief in synthetic fuels as a panacea, collective efforts to scale power-to-liquid production and logistics can help actualise this future faster.
Tread carefully around offsets
Carbon offsets have faced growing controversy lately due to concerns about their legitimacy and effectiveness. Investigations have revealed that many offsets, such as rainforest offset credits offered by Verra and projects involving efficient cookstoves or reforestation, often fail to deliver promised emissions reductions or have exaggerated their impact. As a result, the EU will ban terms like "climate neutral" that rely on offsetting by 2026, reflecting a regulatory crackdown on misleading environmental claims. In light of these developments, airlines should reconsider their reliance on offsets. While high-quality offsets can still play a transitional role, they should be seen as a last resort rather than a central pillar of airline climate strategies to avoid reputational and regulatory risks.
Do not wait for the future to arrive
While most airlines are understandably cautious about investing in nascent propulsion technologies, the decarbonisation imperative will require some bold early moves. Given the severe investment deficit in climate tech, airlines should consider strategic partnerships with aerospace companies and fuel suppliers to co-develop and pilot the most promising next-gen aircraft and secure early-mover advantages as these technologies mature.
Which initiatives have you implemented to enhance your infrastructure and operational efficiencies?
Which has the most potential as the "fuel" of the future?
Are any of your initiatives focused on investing in next-generation fleet?
Do you offer voluntary carbon offset options to customers?
“It is not the strongest of the species that survive, not the most intelligent, but the one most responsive to change.”
– Charles Darwin
Let's face it. When it comes to sustainability in the airline industry, the conversation always circles back to money and the future. Can airlines look beyond having a lofty vision or a well-crafted strategy and invest in fundamentally transforming the way we fly?
Our survey suggests that the industry is starting to wake up to the magnitude of the challenge ahead, but still grappling with how to balance the costs of going green with the need to stay competitive in a cutthroat market.
But here's the thing: the airlines that will emerge as the true leaders in sustainability aren't the ones who will throw a few extra bucks at the problem and hope for the best. They're the ones who will take a hard look at their budgets, their future plans, and their entire business model, and ask themselves, "How can we reinvent ourselves in a way that puts sustainability at the core of everything we do?"
High costs and technological barriers dampen sustainability efforts
Budgets are steadily increasing Investment in SAF companies dominates but diversification is imminent
Airlines identify high costs (95%) and technological limitations (90%) as the top challenges impeding their sustainability efforts. The industry's thin margins make it difficult to absorb the premium for SAF and other green technologies. Inadequate supply and infrastructure for SAF, electric and hydrogen aircraft compound the problem. Lack of consumer demand (65%), regulatory hurdles (55%) and profitability concerns (50%) also loom large, while lack of C-suite support is rarely an issue (5%).
Nearly two-thirds of airlines (65%) report a significant increase in sustainability budgets over the past five years, while 35% have seen a moderate rise. None reported flat or shrinking budgets. This upward trajectory suggests airlines are putting more financial muscle behind their sustainability commitment. However, the fact that 65% of airlines still allocate less than 1% of their total annual budget to sustainability initiatives indicates that investments may not yet match the scale of the challenge.
70% of airlines are investing in SAF companies, by far the most popular category. This aligns with the industry consensus that SAF is the most promising near-term path to decarbonisation. However, some airlines are beginning to diversify into electric aircraft (15%), hydrogen technology (35%), carbon offsetting (20%) and carbon removal (5%).
Collaborate for collective benefit
With cost a nearly universal barrier to scaling sustainable technologies, airlines should work together and with value chain partners to build economies of scale and reduce prices. Joint offtake agreements, shared infrastructure investments, and industry-wide consumer education campaigns could help make SAF and other green solutions more affordable and accessible. Airlines should also explore creative financing models like green bonds for sustainability investments.
Boost budgets to match ambitions
While the upward trend in sustainability spending is encouraging, airlines may need to dedicate even more resources to achieve their ambitious climate goals. Rather than treating sustainability as merely a budget line item, airlines should incorporate their net zero plans into all capital allocation and strategic decisions.
Diversify sustainability portfolios
Understandably, airlines are betting big on SAF in the near term. However, they should also cultivate a broader portfolio of sustainability solutions for the long term. Monitoring and selectively investing in emerging technologies like electric and hydrogen propulsion can provide strategic hedges and future competitive advantages as well. Ultimately, airlines should deploy capital across multiple sustainable levers to manage risk and maximise impact. Airlines should view sustainability barriers not as threats but as a chance to drive industry transformation. The current scenario offers extraordinary opportunities for airline leadership. Airlines that are early adopters and fast scalers of sustainable technologies can gain a competitive edge with climate-conscious consumers, investors and corporate customers.
Turn challenges into opportunities
What percentage of your annual budget is allocated to sustainability initiatives?
Have you seen an increase in the budget for sustainability over the past five years?
Which of the following areas have you invested in?
"When it is obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps."
– Confucius
Our inaugural Sustainable Aviation Outlook report, based on a survey of 20 leading airlines, paints a picture of an industry at one of the most pivotal moments in its history. We are just about getting started on our sustainability journey. Much more remains to be done to achieve the transformative change required to align with an industry-wide 2050 net zero target.
The airline industry has a critical role to play in the global fight against climate change, and the decisions made by airlines in the coming years will have profound consequences for the planet and for future generations.
Here’s where we stand:
Airlines are investing in building sustainability teams, implementing a wide range of operational efficiency measures, exploring next-generation technologies, and setting ambitious net-zero targets. However, the success of these efforts will depend on the ability of airlines to empower their sustainability teams with the necessary resources, influence, and cross-functional collaboration to drive meaningful progress.
As airlines continue to navigate the challenges of the post-pandemic recovery, it is crucial that sustainability should be a top investment priority and not a luxury. Airlines must be willing to make bold, long-term bets on sustainable aviation fuels, fleet renewal, and other game-changing innovations, even in the face of short-term financial pressures.
The path to a sustainable future for aviation will also require an unprecedented level of industry-wide collaboration and a willingness to embrace disruptive change. Airlines must work together to drive down the costs of sustainable technologies, engage governments and stakeholders to create supportive policies and infrastructure, and build trust with customers and the public through transparent and credible action.
The climate crisis demands a fundamental transformation of the aviation industry. While the temptation to wait for a silver bullet may be strong, airlines must resist the urge to invest only in perfect solutions and instead commit to the hard work of incremental progress while planning for major changes in the medium and long term.
The journey ahead will not be easy. But the destination demands and deserves all the effort we can put in. After all, a thriving, carbon-neutral aviation industry that connects people and economies while sustaining our beautiful planet – will repay our sweat and tears handsomely.
Cirium's Emerald Sky platform helps executives understand the impact of every flight. The platform represents a ground-breaking integration of data, analytics, and innovative methodology, delivering unparalleled precision in measuring aircraft and flight CO2 emissions.
Listen In: Cirium’s Jeremy Bowen on the power of data and sustainability in aviation
Envest Global is a global sustainability advisory company specialising in the analysis and benchmarking of the sustainability credentials of the world’s leading airlines based on robust, independent performance data.
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Hosted by SimpliFlying CEO and Founder Shashank Nigam, Sustainability in the Air is the world’s leading sustainable aviation podcast.
Over the past year, aviation guests have included Scott Kirby (United Airlines), Marie Owens Thomsen (IATA), Jonathon Counsell (IAG), Amelia DeLuca (Delta Air Lines), Helen Giles (Southwest Airlines), Adam Goldstein (Archer), Bonny Simi (Joby) and Nicholas Flanders (Twelve).
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Meanwhile, our Sustainability in the Air website includes weekly articles on sustainable aviation tech startups; reports on subjects as diverse as SAF and eVTOLs; and regular newsletters read by thousands of industry professionals to understand the ever-evolving space of sustainable aviation and the industry’s potential pathways to net zero by 2050.
Climate change concerns are making the aviation industry turn to sustainable aviation fuel (SAF), electric, and hydrogen-powered aircraft to cut emissions. However, scaling these technologies requires significant innovation.
Sustainability in the Air highlights the journeys of entrepreneurs, executives, and investors who are navigating these challenges and paving the way for the future of aviation. Learn more at sustainabilityintheair.com
