American Airlines Group Inc. (AAL) and Google have signed an agreement to purchase 35 million gallons of sustainable aviation fuel certificates over the next three years, marking the largest publicly announced transaction of its kind between an Airlines and a single corporate customer.

Announced on June 9, 2026, the partnership will facilitate the delivery of physical sustainable aviation fuel (SAF) to Chicago O’Hare International Airport (ORD) via Valero Marketing and Supply Company. The agreement is projected to reduce greenhouse gas emissions by nearly 300,000 metric tons of carbon dioxide equivalent (CO2e), allowing Google to offset the environmental impact of its employee business travel.

Scaling sustainable aviation fuel

The sustainable aviation fuel certificates (SAFc) model allows corporate customers to claim the environmental benefits of the fuel even if they do not physically consume it on their specific flights. Google will utilize the SAFc Registry to apply these emissions reductions against its corporate travel footprint.

“This strategic collaboration with American Airlines demonstrates how companies can work together to scale critical sustainability technologies. By entering into this long-term commitment, we are sending a vital demand signal to catalyze investment and bring more SAF to market,” said Kate Brandt, Chief Sustainability Officer at Google.

American Airlines stated the agreement is a critical step in reducing operational emissions and growing market demand for SAF. According to the airline, the aviation industry currently accounts for 2 to 3 percent of global carbon dioxide emissions. Google noted that SAF has the potential to reduce air travel emissions by up to 80 percent compared to traditional jet fuel.

Legislative incentives and prior collaborations

The transaction was facilitated by a recently enacted sustainable aviation fuel tax credit passed by the Illinois General Assembly. The legislation is designed to incentivize the delivery and utilization of SAF within the state.

“This agreement demonstrates how our nation-leading SAF tax credit can bring industry leaders together as we work toward a more sustainable future. Through partnerships with innovators like American Airlines and Google, we’re strengthening Illinois’ role as a global aviation hub and accelerating the transition to cleaner energy,” said Illinois Governor JB Pritzker.

This SAFc agreement follows a 16-week pilot program conducted by American Airlines and Google in 2025. That initiative, which also included Flightkeys and Contrails.org, embedded contrail avoidance models into flight planning and reportedly achieved a 62 percent reduction in contrail formation.

AirPro News analysis

We view this 35-million-gallon agreement as a significant indicator of how corporate sustainability budgets are increasingly subsidizing the premium cost of SAF. While 35 million gallons over three years represents a fraction of American Airlines’ total annual fuel consumption, long-term offtake agreements are essential for producers like Valero to secure financing for expanded refining capacity. The use of the SAFc Registry also highlights the growing maturation of the book-and-claim model, which decouples the environmental attributes of SAF from the physical fuel, solving logistical bottlenecks at airports that lack the infrastructure to receive blended SAF directly.

Sources: American Airlines

This article is based on an official press release from ICAO.

ICAO and IATA Deepen Cooperation to Boost Sustainable Aviation Fuel Tracking

On June 2, 2026, the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) announced an enhanced partnership during the ICAO Aviation Climate Week in Montreal. According to an official press release from ICAO, the collaboration is designed to advance transparency and integrity in tracking the progress, development, and deployment of SAF.

The global aviation sector has formally committed to achieving net-zero carbon emissions by 2050. Industry estimates indicate that SAF is the most significant decarbonization lever currently available, expected to account for up to 65 percent of the total carbon mitigation required to reach this mid-century target. The joint announcement underscores that close collaboration between industry and states, supported by high-quality data, is essential for credible tracking of cleaner aviation energies.

This strategic alignment was unveiled during the “One Global Path: Advancing Net-Zero Aviation” conference, which serves as a global platform for aviation leaders to monitor progress on the ICAO Global Framework for SAF. By integrating robust tracking systems, both organizations aim to ensure that climate investments are recognized consistently across international regulatory frameworks.

Enhancing Transparency and Global Tracking

The Role of the CADO SAF Registry

A central component of this enhanced tracking initiative involves the evaluation of existing fuel accounting systems. According to supplementary industry research, IATA and ICAO will explore how platforms like the SAF Registry can support international reporting. Launched in March 2025 and now managed by the independent, Montreal-based Civil Aviation Decarbonization Organization (CADO), the registry is designed to record SAF transactions accurately and transparently.

Because physical SAF supply is not yet available at all geographical locations, the registry utilizes a “Book and Claim” approach. This system decouples the physical fuel from its environmental attributes, allowing airlines and corporate customers to claim the environmental benefits of SAF without physically loading it into their specific aircraft. This methodology is critical for preventing double-counting and ensuring immutable tracking of emissions reductions.

Aligning with ICAO Frameworks

The press release notes that the organizations agreed to explore how SAF registries and their collected data can support the implementation of ICAO’s Long-Term Aspirational Goal (LTAG) Monitoring and Reporting (LMR) methodology. Furthermore, the data collected through these robust systems helps airlines meet international regulatory obligations, such as ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), by providing verifiable emissions reduction data to state authorities.

Industry Leadership Perspectives

Leadership from both organizations emphasized the necessity of verifiable data to build trust and accelerate the transition away from conventional jet fuel. In the official release, IATA Director General Willie Walsh highlighted the importance of accurate measurement:

“Credible tracking is necessary to know the emissions reductions delivered by SAF. The data collected by the CADO SAF Registry, among others, has the potential to meet this need. By working with ICAO to strengthen how progress on SAF use is measured and reported, we can accelerate deployment, build trust across stakeholders, and put aviation on track for net zero by 2050. This will set a great example for individual states to work with industry to make the most of the SAF data that is being accumulated.”

Willie Walsh, IATA Director General

Echoing this sentiment, ICAO Secretary General Juan Carlos Salazar pointed to the unprecedented level of coordination required to meet the industry’s mid-century climate goals:

“Achieving ICAO’s vision of net zero carbon emissions from international aviation by 2050 will require unprecedented levels of transparency and cooperation across the entire sector. This agreement will support the strengthening of ICAO’s leadership as we support States and industry in their scaling up of sustainable aviation fuels and other aviation cleaner energies.”

Juan Carlos Salazar, ICAO Secretary General

Overcoming Supply Challenges and Market Implications

Current Production Realities

Despite the critical role of SAF in decarbonizing air travel, production volumes have historically lagged behind demand. According to industry data, SAF accounted for just 0.3 percent of global jet fuel production at the end of 2024. Scaling up production remains the primary bottleneck for the Commercial-Aircraft sector, making the efficient allocation and tracking of existing supplies paramount.

To build trust and ensure impartial governance over these limited supplies, IATA spun off the management of the SAF Registry to CADO in early 2025. CADO’s inclusive structure allows participation from governments, fuel producers, airlines, and corporate customers, fostering a harmonized global market.

AirPro News analysis

We view the deepening cooperation between ICAO and IATA as a necessary maturation of the SAF market. By standardizing how environmental attributes are tracked and claimed, this partnership helps create a liquid, global market for sustainable fuels. This standardization provides certainty to airlines that their environmental claims are valid, and assures producers that they can accurately account for deliveries. Ultimately, a unified, credible tracking system mitigates the risk of greenwashing, ensuring that corporate Scope 3 emissions reporting and airline compliance claims are backed by immutable, verified data. This regulatory certainty is exactly what investors need to fund the massive scale-up in SAF production facilities required over the next two decades.

Frequently Asked Questions (FAQ)

What is the CADO SAF Registry?

The CADO SAF Registry is an independent platform launched in March 2025 to accurately and transparently record Sustainable Aviation Fuel transactions. It is managed by the Civil Aviation Decarbonization Organization, a Montreal-based non-profit.

What is the “Book and Claim” approach?

The “Book and Claim” system allows airlines and corporate customers to purchase the environmental benefits of SAF even if the physical fuel is not available at their specific departure airport. The physical fuel is used elsewhere in the aviation system, but the environmental credit is securely tracked and claimed by the purchaser, preventing double-counting.

Why is SAF critical for aviation’s net-zero goals?

Sustainable Aviation Fuel is considered the most viable near-term solution for reducing aviation emissions, as it can be used in existing aircraft engines. Industry projections estimate that SAF will need to provide up to 65 percent of the carbon mitigation required for the aviation sector to reach net-zero emissions by 2050.

Sources: ICAO

This article is based on an official press release from the U.S. Department of Energy.

U.S. Government Accelerates Sustainable Aviation Fuel Initiative to Meet 2030 Goals

The push to decarbonize the aerospace sector is entering a critical execution phase. Through a formalized Memorandum of Understanding (MOU), the U.S. Department of Energy (DOE), the Department of Transportation (DOT), and the Department of Agriculture (USDA) have united to drive the Sustainable Aviation Fuel (SAF) Initiative. Originally launched in September 2021 as the SAF Grand Challenge, this government-wide effort aims to scale up domestic production, enhance national energy security, and revitalize rural agricultural economies.

Sustainable aviation fuel is a synthesized, “drop-in” hydrocarbon fuel derived from renewable or waste materials rather than traditional petroleum. Because it requires no modifications to existing aircraft engines or fueling infrastructure, federal agencies and industry leaders view it as the most viable near-term solution for reducing aviation emissions. According to the DOE, the initiative targets a minimum 50% reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel.

As we move through 2026, the transition from foundational planning to active infrastructure expansion is well underway. With ambitious production targets looming at the end of the decade, the coordinated federal strategy is deploying hundreds of millions in grant funding to bridge the gap between current supply and future demand.

Core Objectives and Federal Investments

Time-Bound Production Targets

The SAF Initiative is anchored by two primary production milestones. According to official DOE and DOT frameworks, the near-term objective is to scale domestic SAF production to 3 billion gallons per year by 2030. Looking further ahead, the long-term goal is to produce enough SAF to meet 100% of domestic aviation fuel demand by 2050, a figure the agencies estimate will reach approximately 35 billion gallons annually.

Biomass Potential and Feedstock Diversity

To meet these massive volume requirements, the initiative relies on a diverse array of approved feedstocks, including corn grain, oil seeds, forestry residues, municipal solid waste, and agricultural byproducts. Data from the DOE’s 2023 Billion-Ton Report indicates that the United States possesses the capacity to triple its biomass production to over 1 billion tons per year. The DOE projects that this volume could yield an estimated 60 billion gallons of liquid biofuels, providing more than enough raw material to satisfy the 2050 aviation demand projections.

Infrastructure and Grant Funding

Federal financial backing has been crucial to moving these targets from paper to production. In January 2025, the Federal Aviation Administration (FAA) announced $249 million in grants through the Fueling Aviation’s Sustainable Transition (FAST) program. This capital injection, funded by a $297 million appropriation to the DOT under the Inflation Reduction Act, is specifically earmarked for domestic SAF production, transportation, and storage infrastructure.

These investments are already yielding tangible geographic expansions. Historically, U.S. SAF supply networks were heavily concentrated on the West Coast. However, federal progress reports note that by early 2025, new supply terminals successfully reached the U.S. East Coast, significantly broadening access for commercial and private aviation hubs nationwide.

“Over the past three years, as this Department has worked alongside our partners in the administration and in the private sector, we’ve made measurable progress in reducing emissions and making our skies cleaner while also growing the economy and creating good-paying jobs.”

Commercial Adoption and Global Context

Airlines Ramp Up Utilization

Commercial airlines are the ultimate end-users of this federal push, and recent data shows a marked increase in adoption, despite ongoing supply constraints. In April 2026, Delta Air Lines reported consuming 23.4 million gallons of SAF throughout 2025. According to the airline’s sustainability disclosures, this represents an 80% increase from the 13 million gallons utilized in 2024.

“Delta’s goal of using 10% SAF by 2030 remains real. Every day, we’re working across our business, industry and the SAF value chain for meaningful impact – and we’re making solid progress.”

International Regulatory Momentum

The U.S. SAF Initiative does not exist in a vacuum; it operates alongside tightening global regulations. In 2025, the European Union’s ReFuelEU Aviation mandate took effect, legally requiring fuel suppliers to blend a minimum percentage of SAF at EU airports. Concurrently, the International Civil Aviation Organization (ICAO) has established a global framework targeting a 5% reduction in the carbon intensity of international aviation fuels by 2030. These international pressures ensure that U.S. airlines operating globally must secure reliable SAF supply chains to remain compliant.

AirPro News analysis

We observe that the narrative surrounding the SAF Initiative has fundamentally shifted over the past two years. While the 2021 Grand Challenge was primarily framed around climate goals and decarbonization, the 2026 landscape, highlighted by reports like the World Economic Forum’s Global Aviation Sustainability Outlook 2026, positions SAF equally as a matter of national energy security. By utilizing domestic agricultural and municipal waste, the U.S. is actively attempting to insulate its aviation sector from volatile foreign oil markets.

However, significant hurdles remain. While Delta’s 80% year-over-year usage increase is commendable, 23.4 million gallons is a drop in the bucket compared to the 3-billion-gallon target set for 2030. The January 2025 SAF Grand Challenge Progress Report and the November 2024 Roadmap Implementation Framework both acknowledge persistent gaps in technology scaling and supply chain logistics. For the DOE, DOT, and USDA, the next four years will be a race against time to ensure that feedstock processing and refinery capacities can match the aggressive timelines they have mandated.

Frequently Asked Questions (FAQ)

• What is Sustainable Aviation Fuel (SAF)?
  SAF is a renewable, “drop-in” alternative to conventional petroleum-based jet fuel. It is synthesized from waste materials, biomass, and agricultural residues, and can be used in existing aircraft without engine modifications.
• What are the primary goals of the U.S. SAF Initiative?
  The initiative aims to achieve a 50% reduction in lifecycle greenhouse gas emissions, produce 3 billion gallons of SAF annually by 2030, and scale up to 35 billion gallons by 2050 to meet 100% of domestic aviation demand.
• Which federal agencies are leading this effort?
  The initiative is a collaborative effort governed by a Memorandum of Understanding between the Department of Energy (DOE), the Department of Transportation (DOT), and the Department of Agriculture (USDA).
• How is the government funding this transition?
  Funding is being deployed through various channels, notably including $249 million in FAA FAST program grants announced in January 2025, which were funded by the Inflation Reduction Act.

Sources: U.S. Department of Energy