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Major Airlines Launch 150 Million Fund to Advance Sustainable Aviation Fuel

The oneworld BEV Fund invests $150 million to accelerate sustainable aviation fuel technology and support aviation’s net-zero goals by 2050.

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Major Airlines Launch $150 Million Fund to Accelerate Sustainable Aviation Fuel Development

The aviation industry has reached a pivotal moment in its decarbonization journey with the announcement of a groundbreaking $150 million investment fund aimed at advancing sustainable aviation fuel (SAF) technologies. The oneworld alliance, in partnership with Breakthrough Energy Ventures (BEV), has launched the oneworld BEV Fund to address the critical challenges of limited availability and high costs that have hindered widespread adoption of SAF. This initiative represents one of the largest coordinated investments by major airlines in next-generation fuel technologies, signaling a significant shift toward collaborative approaches in tackling aviation’s environmental impact.

The fund brings together cornerstone investors Alaska Airlines and American Airlines, along with International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines, demonstrating unprecedented industry unity in pursuing sustainable solutions. With aviation currently accounting for approximately 2-3% of global carbon dioxide emissions and facing rapid growth projections, this investment fund emerges as a crucial mechanism for scaling breakthrough technologies that could transform the sector’s environmental footprint while maintaining the economic viability essential for continued global connectivity.

The Urgent Need for Aviation Decarbonization

The aviation industry faces one of the most challenging decarbonization tasks among all transportation sectors, with emissions continuing to rise as global air travel demand recovers and expands beyond pre-pandemic levels. Commercial aviation concluded its post-COVID recovery in 2024, with passenger traffic reaching approximately 4% above 2019 levels and freight traffic 7% higher than the baseline year. This recovery has brought both opportunities and environmental challenges, as the annual data reveals that 2024 gross emissions were 1% higher than in the CORSIA baseline year of 2019.

The scale of the challenge becomes evident when examining global aviation emissions data, which shows monthly carbon dioxide emissions from domestic and international commercial passenger flights reaching 68.56 million metric tons in December 2024. International flights accounted for over 60% of this total, highlighting the global nature of aviation’s carbon footprint. These emissions have been on an upward trend since April 2020, reflecting the industry’s recovery from the COVID-19 pandemic, and commercial passenger flight emissions have now returned to pre-pandemic levels.

Looking ahead, the aviation sector is projected to face even greater environmental challenges as demand continues to grow. Current projections estimate that demand for air passenger journeys in 2050 could exceed 10 billion, with expected 2021-2050 carbon emissions on a ‘business as usual’ trajectory reaching approximately 21.2 gigatons of CO2. This trajectory presents a stark contrast to the industry’s commitment to achieve net-zero carbon emissions by 2050, a goal that was adopted by the International Civil Aviation Organization (ICAO) in 2022 and by the International Air Transport Association (IATA) member airlines in 2021.

“While aviation accounts for 2-3% of global CO2 emissions today, its share could rise to 6-9% by 2050 if decarbonization does not keep pace with sector growth.”

The oneworld BEV Fund: A Collaborative Investment Approach

The announcement of the oneworld BEV Fund on September 17, 2025, represents a significant milestone in aviation industry collaboration toward sustainable fuel development. The fund, with an initial close of $150 million, brings together some of the world’s largest airlines under a unified investment strategy managed by Breakthrough Energy Ventures, the climate technology investment fund founded by Bill Gates. This partnership structure leverages the complementary strengths of airline industry expertise and venture capital experience in climate technology development.

The fund’s cornerstone investors, Alaska Airlines and American Airlines, provide substantial backing and strategic direction for the initiative. American Airlines CEO Robert Isom, who also serves as chairman of oneworld, emphasized the business rationale behind the investment: “By investing in the SAF technologies of the future, American and our oneworld partners are making a business decision to accelerate the development of novel technologies with the potential to reach larger scale at lower prices than current technologies can achieve.”

Singapore Airlines, despite not being a oneworld alliance member, joined the initiative as part of the initial fund close, reflecting the recognition that sustainable aviation fuel development benefits from the broadest possible industry participation. This inclusive approach signals a shift from competitive dynamics to collaborative problem-solving in addressing shared environmental challenges.

“The oneworld BEV Fund is built to identify and scale breakthrough SAF technologies that can deliver real emissions reductions for jet fuel, compete with fossil-based fuels on cost, and integrate seamlessly with today’s aviation infrastructure.” — Eric Toone, CTO at Breakthrough Energy Ventures

Market Dynamics and Growth Projections

The global SAF market was estimated at $1.43 billion in 2024 and is projected to reach approximately $134.57 billion by 2034, with a compound annual growth rate of 57.53%. The United States leads the regional market, valued at $450.41 million in 2024 and expected to reach $43.16 billion by 2034. North America‘s dominance is attributed to increased air traffic and supportive government initiatives, while the Asia-Pacific region is predicted to grow at over 60% annually during the forecast period.

Despite these growth projections, current SAF production remains limited. Global consumption is expected to reach about 500 million gallons in 2024, with the U.S. recording 24.5 million gallons consumed in 2023. Production capacity constraints, with only two U.S. plants producing SAF at the start of 2024, highlight the need for substantial infrastructure investment. Announced projects like Phillips 66’s Rodeo Renewed and Diamond Green Diesel’s Port Arthur SAF project could increase U.S. capacity to nearly 30,000 barrels per day if completed as planned.

The International Air Transport Association reported that global SAF production reached 1 million metric tons in 2024, nearly double 2023 levels but short of earlier projections. For 2025, production is expected to rise to 2.1 million metric tons, still covering less than 1% of global jet fuel supply.

Cost Challenges and Economic Barriers

The economic viability of SAF remains a significant barrier. In 2025, SAF is forecast to cost 4.2 times more than conventional jet fuel, up from 3.1 times in 2024. Compliance fees imposed by European suppliers, intended to hedge regulatory risks under the EU’s SAF mandate, have exacerbated the price gap, resulting in an estimated $1.6 billion in additional SAF expenses in 2024.

SAF prices range between $3.11 and $6.14 per gallon, compared to conventional jet fuel at about $86 per barrel. With airlines operating on average net profit margins of just 3.6%, these cost disparities make SAF integration a long-term strategic consideration rather than a near-term operational shift.

Nevertheless, some analyses suggest that as production scales and technology advances, SAF will not be substantially more expensive than conventional jet fuel in the long term, supporting the sector’s net-zero emissions target by 2050. The initial high costs are expected to decrease, making SAF more accessible to airlines and passengers over time.

“The cost of achieving net-zero carbon emissions by 2050 is already estimated at a staggering $4.7 trillion. Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.” — Willie Walsh, IATA Director General

Regulatory Framework and Policy Drivers

Regulatory requirements and policy incentives are increasingly shaping SAF adoption. The European Union’s ReFuelEU Aviation regulation mandates SAF use at 155 major Union airports starting in 2025, with quotas rising to 35% for synthetic fuels by 2050. This regulation uses a penalty system to ensure compliance, making fulfilling SAF mandates economically preferable to non-compliance.

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is another significant framework. Airlines must surrender credits or purchase CORSIA-eligible fuels to offset emissions above a set baseline. The cost of complying with CORSIA is expected to reach $1 billion in 2025, increasing the attractiveness of SAF as a compliance mechanism.

In the United States, the Renewable Fuel Standard (RFS), federal tax credits, and state programs provide policy support. The White House aims to meet 100% of U.S. aviation fuel demand with SAF by 2050, with intermediate targets of 3 billion gallons by 2030 and 35 billion gallons by 2050. These policies create both demand certainty and financial incentives for SAF investment and production.

Industry Initiatives and Collaborative Efforts

The oneworld BEV Fund is part of a broader trend toward industry collaboration. United Airlines Ventures launched a $100 million SAF fund in 2023, joined by partners such as Air Canada, Boeing, and GE Aerospace. The oneworld alliance itself aspires to use SAF for 10% of its combined fuel volumes by 2030, supporting its collective net zero goal by 2050.

Breakthrough Energy Ventures, founded by Bill Gates, has invested in companies like LanzaJet to support commercial-scale SAF production. The International Air Transport Association coordinates industry sustainability efforts through its Fly Net Zero commitment and detailed roadmaps for achieving net-zero CO2 emissions by 2050, with SAF expected to provide about 65% of the mitigation needed.

These collaborative efforts, which include partnerships with technology firms and energy companies, are crucial for developing the diverse technology pathways and supply chains needed for SAF to achieve meaningful market penetration.

Technology Development and Production Pathways

SAF production relies on multiple technology pathways, including hydro-processed esters and fatty acids (HEFA), Fischer-Tropsch synthesis, and alcohol-to-jet processes. Biofuels currently account for over 71% of the SAF market, with HEFA-based fuels offering 50-65% emission reductions compared to traditional jet fuel.

Emerging pathways, such as power-to-liquid synthetic fuels made from hydrogen and captured CO2, offer the potential for even deeper decarbonization. The EU’s ReFuelEU regulation specifically mandates synthetic fuel use, recognizing their potential for truly carbon-neutral aviation.

Scaling these technologies will require significant investment, with over 140 renewable fuel projects announced for production by 2030. However, not all projects will reach final investment decisions, underscoring the need for continued financial and policy support.

Conclusion

The launch of the oneworld BEV Fund marks a pivotal moment in aviation’s journey toward sustainable fuel adoption. With $150 million in initial funding and management by Breakthrough Energy Ventures, the fund combines airline industry expertise with climate technology investment to accelerate next-generation SAF development. This collaborative approach, involving both alliance and non-alliance members, reflects broad industry recognition that overcoming the scale and cost challenges of SAF requires collective action.

Despite explosive market growth projections, current SAF production and adoption remain limited by high costs, supply shortages, and infrastructure constraints. Regulatory frameworks like ReFuelEU and CORSIA are creating strong compliance incentives, while voluntary industry commitments and collaborative investment models are driving innovation. The success of the oneworld BEV Fund and similar initiatives will be critical in achieving aviation’s net-zero emissions goals by 2050 while maintaining global connectivity.

FAQ

What is the oneworld BEV Fund?
The oneworld BEV Fund is a $150 million investment fund launched by the oneworld airline alliance and Breakthrough Energy Ventures to advance and commercialize next-generation sustainable aviation fuel technologies.

Which airlines are participating in the fund?
Cornerstone investors include Alaska Airlines and American Airlines, with International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines also participating.

Why is sustainable aviation fuel important?
SAF is critical for reducing aviation’s carbon emissions, which currently account for 2-3% of global CO2 emissions and are expected to rise as air travel demand grows.

What are the main barriers to SAF adoption?
The primary barriers are high costs (SAF is 4.2 times more expensive than conventional jet fuel in 2025), limited production capacity, and supply chain constraints.

What role do regulations play in SAF development?
Regulations like the EU’s ReFuelEU Aviation and the global CORSIA scheme create mandatory SAF usage and carbon offset requirements, incentivizing investment and scaling of SAF technologies.

Sources: oneworld Press Release

Photo Credit: oneworld

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Sustainable Aviation

Petrobras Chooses Honeywell UOP Ethanol-to-Jet Tech for SAF Facility

Petrobras plans a large-scale Sustainable Aviation Fuel facility using Honeywell UOP’s Ethanol-to-Jet technology at REPLAN refinery in São Paulo, Brazil.

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

On April 14, 2026, Honeywell announced that Brazilian state-owned energy corporation Petrobras has selected Honeywell UOP’s Ethanol-to-Jet (ETJ) process technology for a proposed Sustainable Aviation Fuel (SAF) facility. According to the official press release, the planned installation will be located at Petrobras’ REPLAN refinery in São Paulo, Brazil, marking the first large-scale ETJ initiative in Latin America.

Once approved and fully operational, the facility is projected to produce up to 10,000 barrels per day (bpd), equivalent to 420,000 gallons per day, of SAF. The project aims to leverage Brazil’s highly efficient and abundant ethanol industry, which primarily utilizes sugarcane and other agricultural byproducts, to meet the escalating domestic and global demand for low-carbon aviation fuels.

Project Details and Strategic Context

Scaling Up Ethanol-to-Jet Technology

The proposed facility at the REPLAN (Paulínia) refinery remains in the project development phase and is pending a Final Investment Decision (FID) before construction can commence. By utilizing Honeywell UOP’s ETJ process, Petrobras intends to convert low-carbon ethanol into aviation fuel. Brazil is currently the world’s second-largest ethanol producer, accounting for nearly a quarter of global production, and its sugarcane-derived ethanol carries an extremely low carbon intensity (CI) score.

In the company press release, Honeywell leadership emphasized the strategic importance of utilizing regional agricultural strengths to scale renewable fuels.

“Honeywell has a long history of providing innovative process technologies and technical expertise to reduce the cost to produce renewable fuels and help customers leverage new feedstock options. With Honeywell’s ethanol-to-jet process technology, Petrobras is positioned to deliver low-carbon energy solutions leveraging abundant agricultural byproducts to create fuel, helping meet global demand.”

, Ken West, President and CEO of Honeywell Process Technology

Petrobras’ Broader SAF Strategy

This ETJ project represents a core component of Petrobras’ aggressive 2026-2030 Business Plan. According to the provided research data, the state-owned company is committing a $1.5 billion investment in biorefining, targeting 44,000 bpd of dedicated clean fuel capacity by 2030. Petrobras has been rapidly diversifying its SAF production pathways over the past few years.

In 2024, Petrobras licensed Honeywell UOP’s HEFA (Hydroprocessed Esters and Fatty Acids) technology to produce SAF and renewable diesel at the Presidente Bernardes Refinery (RPBC) using soybean oil and beef tallow. Furthermore, in December 2025, the company delivered its first commercial batch of co-processed SAF from its Duque de Caxias Refinery (Reduc), and in February 2026, it selected Topsoe’s HydroFlex technology for a massive waste and vegetable oil feedstock project at the Boaventura Energy Complex.

Industry and Regulatory Drivers

Meeting the 2027 Mandates

The push for scalable SAF production in Brazil is heavily driven by strict regulatory deadlines. Starting in 2027, airlines operating in Brazil must utilize SAF to comply with the United Nations’ ICAO CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) mandates for international flights, alongside Brazil’s domestic “Future Fuel Law.”

To support this transition, the Brazilian government announced a $1.1 billion (6 billion reais) investment in 2024 through BNDES and Finep to bolster local SAF production. Honeywell executives noted that these factors perfectly position the region for rapid growth.

“Brazil has the scale, feedstock and technology partners needed to become a global powerhouse in sustainable aviation fuel. This project is a major milestone for the region and demonstrates how strategic collaboration can accelerate Brazil’s role in the energy transition.”

, José Fernandes, President of Honeywell Latin America

AirPro News analysis

We observe that Petrobras is employing a highly pragmatic “all-of-the-above” strategy to mitigate supply chain risks. By investing simultaneously in co-processing, HEFA technology, Topsoe’s HydroFlex, and now Honeywell’s ETJ technology, Petrobras is hedging its bets across multiple feedstocks, including soy, tallow, corn oil, and ethanol. This diversification ensures resilience against agricultural yield fluctuations and commodity price spikes.

Furthermore, this ETJ project underscores Brazil’s potential to become the “Saudi Arabia of SAF.” The country already possesses the massive agricultural infrastructure required for ethanol production; by integrating Honeywell’s advanced processing technology, Brazil is effectively moving up the value chain to export high-margin, low-carbon aviation fuels just as the 2027 CORSIA regulatory clock runs out.

Frequently Asked Questions

What is Ethanol-to-Jet (ETJ) technology?

ETJ is a chemical process that converts ethanol, often derived from agricultural products like sugarcane or corn, into synthetic paraffinic kerosene, which can be blended with conventional jet fuel to create Sustainable Aviation Fuel (SAF).

How much SAF will the Petrobras REPLAN facility produce?

Once approved and operational, the facility is designed to produce up to 10,000 barrels per day, which equates to approximately 420,000 gallons per day.

Is the REPLAN ETJ facility currently under construction?

No. According to the project details, the facility is currently in the project development phase and is pending a Final Investment Decision (FID) before construction begins.


Sources: Honeywell Press Release

Photo Credit: Honeywell

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Sustainable Aviation

Infinium’s Project Atlas Selected for Sustainable Aviation Fuel Supply

Infinium’s Project Atlas chosen by SABA to supply sustainable aviation fuel certificates with American Airlines handling delivery and logistics.

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

In a significant step for the sustainable aviation fuel (SAF) market, Infinium and the Sustainable Aviation Buyers Alliance (SABA) have announced that Infinium’s Project Atlas was selected to supply SAF certificates under SABA’s next-generation procurement initiative. According to the official press release, the proposal was submitted jointly with American Airlines, which will take delivery of the physical fuel and manage logistics.

The agreement aims to accelerate the deployment of high-integrity, next-generation fuel pathways by converting corporate demand into long-term, bankable supply agreements. By securing these offtake contracts, developers like Infinium can better support project financing and scale their operations to meet the aviation industry’s growing decarbonization targets.

Project Atlas and eSAF Production Targets

Project Atlas is an electrofuel (eSAF) development project by Infinium Energy. The company stated in its release that the facility has a planned capacity of approximately 100,000 metric tons per annum (MTPA) and targets a 95 percent reduction in carbon intensity compared to traditional fossil jet fuel. This new facility builds upon the company’s previous commercial deployment efforts, specifically Project Pathfinder in Corpus Christi and Project Roadrunner in Pecos.

In addition to supplying SABA’s corporate buyers, Infinium noted that Project Atlas will produce EU-compliant RFNBO (Renewable Fuels of Non-Biological Origin) eSAF. This positions the project to serve the European market, where the ReFuelEU Aviation regulation mandates a 2 percent SAF blending requirement that began in 2025, scaling up to 20 percent by 2035. A dedicated sub-mandate for synthetic eSAF is also slated to take effect in 2030.

“Being selected for this SABA offtake agreement is pivotal for Project Atlas,” said Robert Schuetzle, CEO of Infinium, in the press release. “The agreement reflects growing commercial demand for next-generation power-to-liquid fuels and supports the continued development of new domestic production capacity.”

The “Book and Claim” Model

SABA’s procurement strategy relies on a “book and claim” model. According to the announcement, corporate customers purchase sustainable aviation fuel certificates (SAFc) to invest in SAF and claim the associated environmental benefits against their Scope 3 emissions. Meanwhile, the physical fuel is delivered to an aircraft operator, in this case, American Airlines.

American Airlines will serve as the physical user of the eSAF, marking its second eSAF agreement with Infinium. The airline’s participation enables the allocation of emissions reductions to SABA’s corporate members without requiring the fuel to be loaded onto the specific flights those corporate employees take.

“We believe voluntary corporate demand can be a catalytic spark to help new SAF production facilities get off the ground,” said Kim Carnahan, CEO of the Center for Green Market Activation and head of the SABA secretariat, in the company statement.

Jill Blickstein, Vice President of Sustainability at American Airlines, added in the release that working with Infinium helps accelerate the development of SAF technologies that have the potential to reach commercial scale at lower prices.

AirPro News analysis

We note that the selection of Project Atlas highlights a critical mechanism in the modern SAF economy: decoupling the environmental attributes of sustainable fuels from their physical delivery. For power-to-liquid eSAF pathways, which are highly scalable but currently capital-intensive, securing long-term, binding offtake agreements is often the final hurdle before reaching a Final Investment Decision (FID).

By aggregating corporate demand through SABA, which launched this specific procurement round in May 2025, buyers provide the financial certainty needed to build new plants. With initial production at Project Atlas expected by 2029, this deal underscores how corporate sustainability budgets are increasingly being leveraged to underwrite the physical infrastructure required for aviation’s energy transition.

Frequently Asked Questions

What is eSAF?

Electro-sustainable aviation fuel (eSAF) is a type of synthetic fuel produced using renewable energy and captured carbon dioxide. Infinium’s process converts waste CO₂ and renewable power into a drop-in aviation fuel that is compatible with existing aircraft engines and fueling infrastructure.

How does the book and claim system work for SAF?

The book and claim system allows companies to purchase the environmental benefits of SAF (the “claim”) via certificates, even if the physical fuel (the “book”) is used by a different operator. This enables corporate buyers to reduce their reported climate emissions while funding the production of sustainable fuels.

Sources

Photo Credit: Infinium

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Sustainable Aviation

RECARO and Iberia Launch Sustainable Seating Trial on A320neo

RECARO partners with Iberia to trial sustainable economy seats on an Airbus A320neo using upcycled fishing nets and real wood inlays.

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This article is based on an official press release from RECARO Aircraft Seating.

RECARO Aircraft Seating has announced a new operational trial in partnership with Spanish flag carrier Iberia, introducing certified sustainable seating features to commercial service. Starting this spring, passengers flying on a selected Iberia Airbus A320neo will experience economy class seats upgraded with environmentally conscious materials.

According to the company’s press release, the trial involves the installation of 186 RECARO R1 and R2 economy class seats in a hybrid cabin layout. The seats, provided as part of a modification kit, will remain in service for a minimum of six months to evaluate their performance in daily airline operations.

This initiative marks the first time RECARO has collaborated with an airline customer to test these specific sustainable features in a live environment, underscoring a growing industry push to reduce the environmental footprint of aircraft interiors.

Sustainable Materials in the Cabin

Upcycled Fishing Nets and Real Wood

The development of these new seating features required a rigorous step-by-step process, including the creation of mock-ups, qualification testing, and final material certification for commercial cabin use. The resulting R1 and R2 seats incorporate two primary sustainable elements: literature pockets made from upcycled fishing nets and real wood inlays.

The literature pockets are manufactured using discarded fishing nets recovered from marine environments. According to RECARO, outfitting a single-aisle aircraft shipset, such as the A320neo, with these pockets removes approximately 2 kilograms of waste material from the oceans. Additionally, the seats feature a real wood-based element integrated into the bumper, replacing traditional synthetic finishes with a natural alternative while maintaining durability.

“With these seats, we were able to combine innovation with ingenious design and sustainability,” said Dr. Mark Hiller, CEO of RECARO Aircraft Seating and RECARO Holding, in the official release. “We are very proud of this step in bringing a more sustainable seating options to the cabin and partnering with Iberia as our trial customer.”

The R Sphere Concept and Industry Recognition

Crystal Cabin Award Nomination

The materials and design philosophies tested in the Iberia trial originate from RECARO’s R Sphere Sustainable Concept Seat. The R Sphere program focuses on reducing the environmental impact of aircraft seating across its entire lifecycle, utilizing recyclable components, bio-based materials, and modular designs that simplify end-of-life disassembly.

The R Sphere concept has been nominated as a finalist in the Sustainable Cabin category for the 2026 Crystal Cabin Awards. The aviation industry will get a closer look at these innovations during the Aircraft Interiors Expo (AIX) in Hamburg this April, with award winners scheduled to be announced on April 14, 2026.

Industry reports from outlets such as APEX and Aerospace Global News note that the broader R Sphere modular seat design can save approximately 1.5 kilograms per passenger compared to conventional models. On a standard single-aisle aircraft, this weight reduction translates to an estimated lowering of carbon emissions by up to 55 tons of CO2 annually.

AirPro News analysis

We view the partnership between RECARO and Iberia as a highly pragmatic approach to sustainability in the commercial aviation sector. By utilizing a six-month trial on a single A320neo, Iberia can gather real-world data on the durability, maintenance requirements, and passenger reception of upcycled materials without the immediate financial risk of a fleet-wide retrofit. Furthermore, integrating materials like reclaimed ocean plastics into highly visible passenger touchpoints, such as literature pockets, serves a dual purpose: it tangibly reduces marine waste and provides airlines with a visible sustainability narrative that passengers can interact with directly during their flight.

Frequently Asked Questions

What aircraft is being used for the RECARO sustainable seat trial?

The trial is being conducted on a selected Airbus A320neo operated by Iberia.

How long will the trial last?

The seats will be in operational service for a trial period of at least six months.

What sustainable materials are included in the seats?

The RECARO R1 and R2 seats feature literature pockets made from upcycled fishing nets and real wood inlays integrated into the seat bumpers.

Sources

Photo Credit: RECARO Aircraft Seating

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