Sustainable Aviation
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.
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 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 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
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.
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 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.
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.
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.
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.
What is the oneworld BEV Fund? Which airlines are participating in the fund? Why is sustainable aviation fuel important? What are the main barriers to SAF adoption? What role do regulations play in SAF development? Sources: oneworld Press Release
Major Airlines Launch $150 Million Fund to Accelerate Sustainable Aviation Fuel Development
The Urgent Need for Aviation Decarbonization
The oneworld BEV Fund: A Collaborative Investment Approach
Market Dynamics and Growth Projections
Cost Challenges and Economic Barriers
Regulatory Framework and Policy Drivers
Industry Initiatives and Collaborative Efforts
Technology Development and Production Pathways
Conclusion
FAQ
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.
Cornerstone investors include Alaska Airlines and American Airlines, with International Airlines Group, Cathay Pacific, Japan Airlines, and Singapore Airlines also participating.
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.
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.
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.
Photo Credit: oneworld
Sustainable Aviation
Airbus-led ECLIF-X Campaign Studies Aviation Non-CO2 Emissions 2025-2027
The ECLIF-X campaign investigates how low-sulphur and low-aromatic fuels reduce contrail formation and non-CO2 emissions in aviation from 2025 to 2027.
This article is based on an official press release from Airbus.
In a closely coordinated chase across the sky, the aviation industry is taking aim at one of its most visible and complex climate challenges: condensation trails. While carbon dioxide emissions have long dominated sustainability discussions, recent scientific consensus highlights that non-CO2 emissions account for a significant portion of commercial aviation’s total climate warming impact.
To address this, Airbus, the German Aerospace Center (DLR), and engine manufacturer Pratt & Whitney have launched ECLIF-X (Emissions and Climate Impact of alternative Fuels – X). According to an official Airbus press release, this joint research campaign utilizes a “flying laboratory” to investigate the effects of fuel composition on aviation’s non-CO2 impact.
Running from 2025 to 2027, the ECLIF-X campaign captures real-time data on how low-sulphur and low-aromatic fuels interact with advanced engine combustors. At AirPro News, we recognize this initiative as a critical step toward understanding and mitigating the formation of climate-warming contrails before new environmental regulations take full effect.
The methodology behind the ECLIF-X campaign involves two aircraft flying in tandem at cruising altitude. The “emitter” is an Airbus A321XLR test aircraft (registration MSN11058), powered by Pratt & Whitney PW1100G-JM engines. Research reports indicate these engines are equipped with the TALON-X rich-burn combustor, a technology specifically designed to reduce soot emissions. During the tests, the A321XLR is flown with three different types of fuel to compare their respective emission profiles.
Following closely behind is the “sniffer,” DLR’s heavily instrumented Falcon 20E research aircraft. Drawing on over 30 years of atmospheric research expertise, DLR scientists pilot the Falcon 20E directly into the exhaust wake of the A321XLR.
Flying at distances of just 50 to 300 meters, the Falcon 20E captures precise, real-time data on the physical and chemical properties of the emissions before they dissipate.
This proximity allows researchers to analyze the exhaust plume in real-time, providing unprecedented insights into the immediate atmospheric reactions triggered by different fuel blends.
Contrails are line-shaped ice clouds that form when hot, humid engine exhaust mixes with cold, high-altitude air. Depending on atmospheric conditions, these contrails can persist and spread into cirrus clouds that trap outgoing infrared radiation from the Earth. According to industry research, studies suggest that non-CO2 effects could represent anywhere from 35% to roughly two-thirds of aviation’s total accumulated climate impact. Airbus refers to the microphysics of contrail formation as the “sticky seed” problem. Conventional jet fuel contains aromatic compounds, which are the primary precursors for soot particles during combustion. These soot particles act as the foundational condensation nuclei, or “seeds,” for contrails. Furthermore, even trace amounts of sulphur in jet fuel result in the formation of sulphuric acid. This acid coats the soot particles, making them “sticky” and highly attractive to water vapor.
By utilizing fuels with low aromatics and low sulphur, such as highly refined Sustainable Aviation Fuels (SAF), engines produce significantly fewer soot particles and less sulphuric acid. Fewer seeds mean fewer ice crystals, resulting in contrails that are thinner, shorter-lived, or completely prevented.
The current campaign builds upon the landmark ECLIF3 study, which concluded in 2024. Data from ECLIF3 proved that flying on 100% SAF reduced the number of contrail ice crystals by 56% and cut the overall climate-warming impact of contrails by at least 26% compared to conventional jet fuel.
The ECLIF-X research arrives at a critical regulatory juncture. As of January 2025, the European Union Emissions Trading System (EU ETS) requires airlines to monitor and report their non-CO2 effects. With the first verified reports due in 2026, the industry faces immediate pressure to understand and quantify these emissions.
The introduction of the EU’s Non-CO2 Aviation Effects Tracking System (NEATS) means airlines are now legally required to track these metrics. Research initiatives like ECLIF-X provide the foundational science necessary to create accurate monitoring, reporting, and verification (MRV) models for the commercial aviation sector.
We view the ECLIF-X campaign as a pivotal transition point for airline operations. Historically, the push for Sustainable Aviation Fuel has been framed almost entirely around lifecycle carbon reduction. However, the empirical data gathered by Airbus and DLR highlights a crucial dual benefit: SAF physically alters the clouds aircraft leave behind.
Beyond fuel certification, this research paves the way for “climate-friendly routing.” As airlines and meteorologists better understand exactly how and when contrails form, flight dispatchers could soon pair clean fuels with tactical flight path adjustments to avoid atmospheric regions prone to persistent contrail formation. This operational shift will likely become a standard practice as regulatory bodies tighten non-CO2 reporting requirements.
Sources: Airbus
The ECLIF-X Campaign: A High-Altitude Chase
The Emitter and the Sniffer
Decoding the “Sticky Seed” Problem
How Contrails Form and Trap Heat
Building on Previous Success
Regulatory Urgency and Future Operations
EU ETS and NEATS Compliance
AirPro News analysis
Frequently Asked Questions (FAQ)
ECLIF-X (Emissions and Climate Impact of alternative Fuels – X) is a joint research initiative by Airbus, DLR, and Pratt & Whitney running from 2025 to 2027 to study how fuel composition affects contrail formation.
Persistent contrails can spread into cirrus clouds that trap heat in the Earth’s atmosphere. Studies indicate these non-CO2 emissions account for 35% to two-thirds of aviation’s total climate impact.
Soot and sulphuric acid from conventional jet fuel create “sticky” particles that attract water vapor, forming the ice crystals that make up contrails. Low-sulphur and low-aromatic fuels reduce these seeds.
Under the EU ETS, airlines were required to begin monitoring non-CO2 effects in January 2025, with the first verified reports due in 2026.
Photo Credit: Airbus
Sustainable Aviation
SHEIN Expands Sustainable Aviation Fuel Use with DHL Partnership
SHEIN partners with DHL Express to pilot Sustainable Aviation Fuel in air freight, supporting emissions reduction amid market and regulatory challenges.
This article is based on an official press release from SHEIN.
On March 24, 2026, global fashion retailer SHEIN announced a new agreement with DHL Express to utilize the logistics provider’s GoGreen Plus service. This initiative integrates Sustainable Aviation Fuel (SAF) into SHEIN’s international air freight operations, marking another step in the company’s efforts to address lifecycle emissions associated with its supply chain.
According to the official press release, the partnership is designed as an early-stage pilot to help the retailer evaluate economic feasibility, certification frameworks, and operational integration. SHEIN explicitly acknowledges that the immediate emissions impact will be modest relative to its total air transport footprint, reflecting broader constraints in the global SAF market where alternative fuels represent only a fraction of conventional jet fuel supply.
We note that this move builds upon SHEIN’s previous SAF pilot programs initiated in 2025, signaling a continued corporate push to support capacity-building activities and demand signaling, particularly within the rapidly evolving Asia-Pacific (APAC) region.
Under the new agreement, SHEIN will leverage DHL’s GoGreen Plus service, which utilizes an “insetting” approach to reduce Scope 3 greenhouse gas emissions. Rather than fueling specific cargo planes directly with SAF, the fuel is introduced into DHL’s broader aviation network. The resulting lifecycle emissions reductions are then allocated to SHEIN using internationally recognized carbon accounting and certification frameworks.
“Signing the GoGreen Plus agreement with SHEIN marks another important milestone in DHL Express’s commitment to driving the green transformation of air logistics. As a long-term partner in SHEIN’s global logistics network, we are pleased to work together to explore how sustainable aviation fuel can be integrated into their air cargo operations.”
The DHL partnership is part of a broader, multi-carrier strategy. Industry research highlights that in 2025, SHEIN procured 187.3 tonnes of SAF across 14 Atlas Air charter flights, achieving an estimated emissions reduction of 579.1 tonnes of CO₂ equivalent (tCO₂e). Furthermore, the company signed a Memorandum of Understanding (MoU) with Lufthansa Cargo in August 2025 to accelerate SAF adoption.
Regionally, SHEIN is also participating in a China-based SAF pilot program organized by China National Aviation Fuel (CNAF) and the Second Research Institute of Civil Aviation of China (CASRI). Through this initiative, the retailer plans to procure an initial batch of SAF from Air China Cargo, utilizing traceability mechanisms to track usage.
“Working with partners such as DHL allows us to better understand how sustainable aviation fuel solutions may be incorporated into air cargo logistics. Initiatives like this are part of SHEIN’s broader efforts to explore how emerging approaches across the aviation sector may contribute to addressing carbon emissions associated with air transport.”
SHEIN’s press release notes that wider adoption of SAF remains constrained by limited production capacity and higher costs. Data from the International Air Transport Association (IATA) released in December 2025 provides stark context for these limitations. According to IATA, global SAF production reached 1.9 million metric tons in 2025. While this doubled the output of 2024, it still represented only 0.6% of total global jet fuel consumption. Growth is projected to slow slightly in 2026, reaching an estimated 2.4 million metric tons, or roughly 0.8% of global demand. Furthermore, SAF currently trades at two to five times the price of conventional fossil jet fuel. IATA estimates that this premium added approximately $3.6 billion to the aviation industry’s fuel costs in 2025 alone.
The macroeconomic challenges are compounded by regulatory friction. IATA has publicly criticized certain regional mandates, arguing that they have distorted markets and increased compliance costs without guaranteeing adequate fuel supply.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry… If the objective is to increase SAF production to further the decarbonization of aviation, then they [policymakers] need to learn from failure and work with the airline industry to design incentives that will work.”
The press release emphasizes strengthening the demand signal for SAF in the Asia-Pacific region through capacity-building activities. Industry data shows that APAC is currently undergoing a massive shift in SAF infrastructure and regulation, transitioning from voluntary goals to concrete mandates.
Singapore implemented a confirmed goal of 1% SAF by 2026, funded by a passenger levy, while Japan is finalizing a 10% SAF mandate by 2030. South Korea, India, and Indonesia are also rolling out blending roadmaps expected to take effect around 2027.
To support this regulatory push, physical infrastructure is scaling up. Neste operates a significantly expanded SAF refinery in Singapore, and Hong Kong-based EcoCeres is expanding into Malaysia. Additionally, in May 2025, the World Economic Forum (WEF) and GenZero launched “Green Fuel Forward,” an initiative specifically designed to scale SAF demand and build regional capacity for aviation decarbonization in APAC, involving major airlines and logistics firms like DHL.
SHEIN’s latest announcement reflects a maturing corporate approach to aviation decarbonization. By explicitly stating that the emissions impact of these early-stage pilots will be “modest,” the company avoids the pitfalls of greenwashing and aligns its messaging with the stark realities of the global SAF market. The reliance on DHL’s GoGreen Plus “book-and-claim” model highlights that, for global shippers, insetting remains the most viable mechanism to participate in the SAF economy without requiring direct physical access to alternative fuels at every origin airport. As APAC mandates like Singapore’s 2026 target take effect, corporate demand signals from high-volume freight users like SHEIN will be critical in justifying the massive capital expenditures required for regional SAF refineries.
GoGreen Plus is a service offered by DHL Express that allows customers to reduce the Scope 3 carbon emissions associated with their freight. It uses an “insetting” or “book-and-claim” model, where DHL purchases Sustainable Aviation Fuel (SAF) and introduces it into its broader aviation network, allocating the certified emissions reductions to the participating customer.
According to December 2025 data from the International Air Transport Association (IATA), SAF accounts for only 0.6% of global jet fuel consumption, constrained by limited production capacity and high costs. SAF is currently two to five times more expensive than conventional fossil jet fuel due to the high costs of feedstock collection, complex refining processes, and a lack of scaled production infrastructure globally.
Sources: SHEIN Press Release
Expanding SAF Pilots and Logistics Partnerships
The DHL GoGreen Plus Agreement
Building on 2025 Initiatives
Global Bottlenecks and the Cost of Decarbonization
Production and Pricing Realities
Policy Friction
The Asia-Pacific Momentum
Regulatory Shifts and Capacity Building
AirPro News analysis
Frequently Asked Questions
What is DHL’s GoGreen Plus service?
How much of global aviation fuel is currently SAF?
Why is SAF more expensive than conventional jet fuel?
Photo Credit: SHEIN
Sustainable Aviation
Aviation Capital Group Publishes 2025 Sustainability Report Highlighting Fleet Modernization
Aviation Capital Group’s 2025 Sustainability Report details fleet modernization, emissions reductions, and new sustainability-linked financial commitments.
This article is based on an official press release from Aviation Capital Group.
Aviation Capital Group (ACG), a prominent global full-service aircraft asset manager, has officially p-shed its 2025 Sustainability Report. The document marks the company’s fifth annual review detailing its progress across key environmental, social, and governance (ESG) priorities.
According to the company’s press release, the 2025 report highlights significant strides in fleet modernization and emissions reductions. As the aviation industry faces mounting pressure to decarbonize, aircraft lessors are increasingly prioritizing newer, more fuel-efficient technology to meet long-term climate targets.
The newly released data underscores ACG’s ongoing transition toward a lower-emission portfolio, supported by strategic financial mechanisms and a growing backlog of next-generation aircraft commitments.
In its official press release, ACG reported that new generation, lower-emissions aircraft now account for 79% of its total fleet. This shift is the result of a deliberate fleet renewal strategy executed throughout the year. During 2025, the lessor added 52 new generation aircraft to its portfolio while simultaneously exiting 36 older generation airframes.
These modernization efforts have yielded measurable environmental benefits. ACG stated that it successfully reduced its relative emissions to 13% below its 2018 baseline. Furthermore, the company noted that its portfolio’s relative emissions are now 14% below the broader aviation industry average.
Looking ahead, the lessor continues to build its pipeline of modern aircraft. As of February 2026, ACG has increased its future aircraft commitments to more than 180 aircraft, ensuring a steady influx of fuel-efficient technology in the coming years.
Beyond fleet metrics, the 2025 Sustainability Report outlines ACG’s integration of ESG principles into its financial and corporate operations. The company announced the extension and upsizing of its Sustainability Linked Loan, which now totals $575 million. Additionally, ACG signed its first Sustainability Linked Leases, aligning its leasing structures with environmental performance metrics. On the social responsibility front, the press release highlighted that ACG contributed to more than 20 worthy causes worldwide during the 2025 calendar year.
Company leadership emphasized the importance of these initiatives in the context of broader industry goals.
“I am pleased to share ACG’s 2025 Sustainability Report, which reflects the progress we have made embedding sustainability, social responsibility and governance excellence into all aspects of our business. While the path to achieving net zero by 2050 is becoming increasingly demanding, we remain committed to shaping a sustainable future by deepening our impact as a business and broadening our influence across the wider aviation ecosystem through action, leadership, and collaboration.”
, Thomas Baker, Chief Executive Officer and President of ACG, in a company statement.
We observe that aircraft leasing companies like Aviation Capital Group play a pivotal role in the aviation industry’s transition to net-zero emissions. Because lessors finance a substantial portion of the global commercial fleet, their procurement decisions directly influence the speed at which older, less efficient aircraft are retired.
By tying financial instruments, such as the $575 million Sustainability Linked Loan and newly introduced Sustainability Linked Leases, to environmental targets, lessors create tangible economic incentives for airlines to operate cleaner aircraft. ACG’s reported metric of maintaining portfolio emissions 14% below the industry average demonstrates how aggressive fleet renewal strategies can outpace the broader market’s decarbonization curve.
Founded in 1989, Aviation Capital Group is a premier full-service aircraft asset manager and a wholly owned subsidiary of Tokyo Century Corporation. According to the company, it has approximately 450 owned, managed, and committed aircraft as of December 31, 2025.
As of the end of 2025, ACG leases its aircraft to roughly 85 airlines operating in approximately 50 countries worldwide.
The company reported that its future aircraft commitments have grown to more than 180 aircraft as of February 2026, focusing heavily on new generation, lower-emissions technology.
Fleet Modernization and Emissions Reductions
Financial Commitments and Corporate Governance
AirPro News analysis
The Leasing Sector’s Role in Aviation Sustainability
Frequently Asked Questions (FAQ)
What is Aviation Capital Group (ACG)?
How many airlines does ACG serve?
What are ACG’s future fleet plans?
Sources
Photo Credit: Aviation Capital Group
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