FedEx expands Sustainable Aviation Fuel use at Chicago and Miami hubs

FedEx Doubles Down on Green Skies: SAF Lands at Chicago and Miami Hubs

In the high-stakes world of global logistics, where speed and reliability are paramount, the environmental cost of air freight is a growing concern. The aviation industry is a significant contributor to greenhouse gas emissions, and the pressure to decarbonize is mounting from regulators, customers, and investors alike. Against this backdrop, SAF has emerged as a critical lever for change. It’s a biofuel that mirrors the properties of conventional jet fuel but boasts a significantly smaller carbon footprint over its lifecycle. For a giant like FedEx, with a massive air fleet crisscrossing the globe daily, the adoption of SAF isn’t just an environmental initiative; it’s a strategic imperative for a sustainable future.

FedEx has taken a significant stride in its journey toward carbon neutrality by expanding its use of SAF to two more major U.S. hubs: Chicago-O’Hare International Airport (ORD) and Miami International Airport (MIA). This move, initiated in October 2025, marks the company’s second and third major SAF deployments in the U.S. within a six-month window, following its initial rollout at Los Angeles International Airport (LAX) in May. By integrating SAF into some of its busiest operations, FedEx is sending a clear signal to the market about its commitment to cleaner aviation and its role in fostering a more sustainable logistics industry. This isn’t just about reducing its own emissions; it’s about helping to build the momentum needed to scale up the production and availability of SAF for the entire sector.

Strategic Deployments: A Two-Pronged Approach

The expansion to Chicago and Miami is a calculated move, reflecting the strategic importance of these locations in FedEx’s vast network. At Chicago-O’Hare, a critical hub for domestic and international cargo, FedEx has partnered with Air bp to procure one million gallons of neat SAF, which will be delivered as a minimum 30% blend. This makes FedEx the first U.S. all-cargo airline to use SAF at O’Hare, a significant milestone that underscores its leadership in the sector. The choice of O’Hare was influenced by existing fuel infrastructure and supportive state-level policies, which created a favorable environment for this initiative.

Meanwhile, at Miami International Airport, the gateway to Latin America and the Caribbean, FedEx has commenced taking delivery of approximately three million gallons of blended SAF from AEG, also at a minimum 30% blend. This deployment highlights the company’s focus on embedding sustainability across its regional operations. As Luiz R. Vasconcelos, President of FedEx Latin America and the Caribbean, noted, this move demonstrates to customers that sustainability is a regional priority, not just a distant corporate goal. The combined volume from these two agreements represents a substantial increase in FedEx’s SAF usage and a tangible step toward its ambitious environmental targets.

These deployments are part of a much larger vision. FedEx has set a goal to have 30% of its jet fuel sourced from alternative fuels by 2030, on its way to achieving carbon-neutral global operations by 2040. The use of blended SAF is particularly advantageous as it is a “drop-in” fuel, meaning it can be used in existing aircraft engines and fueling infrastructure without any modifications. This seamless integration is crucial for ensuring operational continuity while progressively reducing the carbon intensity of its flights.

“Each executed agreement signals to fuel producers that airlines are willing and eager collaborators to help to scale the SAF market.” – Karen Blanks Ellis, Chief Sustainability Officer and VP of Environmental Affairs, FedEx.

Navigating the Headwinds: Challenges and the Bigger Picture

While FedEx’s recent moves are commendable, the path to widespread SAF adoption is not without its challenges. The primary hurdles are the high cost and limited supply of SAF. Currently, SAF can be two to four times more expensive than conventional jet fuel, and it accounts for less than 1% of global jet fuel consumption. Karen Blanks Ellis, FedEx’s Chief Sustainability Officer, acknowledged this reality, stating, “The aviation industry still faces a mismatch between available SAF supply and carrier demand.” However, she also expressed encouragement at the early signs of increased SAF production globally.

To bridge this gap, government incentives are playing a crucial role. In the U.S., the Inflation Reduction Act (IRA) offers significant tax credits to SAF producers, aiming to stimulate production and bring down costs. Programs like the Fueling Aviation’s Sustainable Transition (FAST) Grant Program and the SAF Grand Challenge are also part of a concerted government effort to scale up the domestic SAF market to 3 billion gallons annually by 2030. These policy tailwinds are essential for creating a viable market where demand from carriers like FedEx can be met with a steady and affordable supply.

It’s also important to view SAF as one piece of a holistic sustainability strategy. FedEx emphasizes that reducing overall fuel consumption through operational efficiency is equally critical. In fiscal year 2024, the company’s aircraft modernization and other fuel-saving initiatives helped it avoid the use of 140 million gallons of jet fuel, translating into $400 million in savings. These efforts have already enabled FedEx to achieve its goal of a 30% reduction in aircraft emissions intensity from a 2005 baseline, and the company has now set a more ambitious target of a 40% reduction by 2034.

Conclusion: Fueling a Greener Future

FedEx’s expansion of SAF usage to Chicago and Miami is a clear and decisive action that reinforces its commitment to sustainability. By becoming the first all-cargo carrier to deploy SAF at O’Hare and significantly increasing its uptake in Miami, the company is not just cleaning up its own operations but also acting as a catalyst for the broader industry. These agreements send a powerful demand signal to fuel producers, encouraging investment in production capacity and helping to mature the SAF market. It’s a pragmatic, step-by-step approach that tackles the environmental challenge head-on while navigating the economic realities of the industry.

Looking ahead, the journey to decarbonize aviation will require sustained collaboration between airlines, fuel producers, governments, and customers. The scaling of SAF is pivotal, but so are continued advancements in aircraft efficiency, operational improvements, and the exploration of future propulsion technologies. FedEx’s strategy, which combines SAF procurement with a relentless focus on fuel efficiency, provides a robust model for the industry. As the logistics giant continues to integrate sustainability into its core operations, from major airport hubs to last-mile delivery, it is charting a course toward a future where global commerce and environmental responsibility can, and must, coexist.

FAQ

Question: What is Sustainable Aviation Fuel (SAF)?
Answer: SAF is a biofuel with properties similar to conventional jet fuel but with a smaller carbon footprint. It can be produced from various renewable sources, such as used cooking oil, agricultural residues, and municipal solid waste. While it has a similar emissions profile when burned, its production can result in up to 80% fewer lifecycle greenhouse gas emissions compared to conventional jet fuel.

Question: How much SAF is FedEx using at these new locations?
Answer: At Chicago-O’Hare, FedEx will receive a total of one million gallons of neat SAF from Air bp, delivered in a minimum 30% blend. At Miami International, it has begun taking delivery of approximately three million gallons of blended SAF from AEG, also at a minimum 30% blend.

Question: What are FedEx’s broader sustainability goals?
Answer: FedEx aims to achieve carbon-neutral global operations by 2040. A key milestone is its goal to obtain 30% of its jet fuel from alternative sources by 2030. The company also recently achieved a 30% reduction in aircraft emissions intensity from a 2005 baseline and has set a new target of a 40% reduction by 2034.

Sources

• Yahoo Finance