Commercial Aviation
FedEx expands Sustainable Aviation Fuel use at Chicago and Miami hubs
FedEx advances sustainability by deploying SAF at Chicago-O’Hare and Miami hubs, aiming for 30% alternative jet fuel by 2030 and carbon neutrality by 2040.
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
Photo Credit: FedEx
Aircraft Orders & Deliveries
Do228 NXT Secures First Order With NGO Launch Customer
General Atomics AeroTec Systems confirms first Do228 NXT sale to an NGO, with delivery scheduled for early 2027.
General Atomics AeroTec Systems (GA-ATS) has secured the first confirmed order for its newly relaunched Do228 NXT program, announcing an undisclosed non-governmental organization (NGO) as the launch customer for the modernized turboprop.
The announcement, made in a press release on June 11, 2026, follows the aircraft’s official roll-out ceremony in Oberpfaffenhofen, Germany, on June 8, 2026. The sale validates the manufacturer’s decision to resume series production of the Dornier 228 platform, targeting operators requiring short takeoff and landing (STOL) capabilities in low-infrastructure environments. Delivery is scheduled for early 2027.
Humanitarian mission profile and aircraft capabilities
The launch customer plans to utilize the Do228 NXT for humanitarian and special mission operations. In the GA-ATS press release, an NGO representative stated the aircraft will strengthen operational flexibility across various humanitarian scenarios and assist communities when time is critical.
The Do228 NXT retains the core performance characteristics of the legacy Dornier 228 while integrating modernized systems. According to specifications published by Aviation Business News, the aircraft requires a takeoff distance of 445 meters and a landing distance of 362 meters at sea level. It offers a maximum range of up to 3,025 kilometers and a cruise speed of 444 kilometers per hour. The cabin can be configured to carry up to 19 passengers or approximately two tonnes of freighter payload.
Production restart and supply chain stabilization
The launch customer announcement follows a series of program milestones for GA-ATS. The Do228 NXT demonstrator completed its first flight on May 2, 2026. On June 8, 2026, the company hosted a roll-out ceremony attended by approximately 500 guests, where the aircraft was displayed in a blue triangle livery designed to highlight its aerodynamics and multi-role capabilities, as reported by Defence Industry Europe.
To support the production restart, GA-ATS has restructured its manufacturing approach. The company brought wing manufacturing in-house at its Oberpfaffenhofen facility to reduce reliance on third-party suppliers and mitigate component lead times. Florian Rohe, Managing Director at GA-ATS, confirmed to Aviation Business News that major hurdles regarding the supply-chain ramp-up have been addressed. Rohe also noted in a statement to Defense Mirror that the signed contracts and early 2027 delivery timeline confirm the decision to resume production was correct.
The aircraft will make its public debut at the ILA Berlin Air Show from June 10 to June 14, 2026, followed by an appearance at the Farnborough International Airshow in July 2026.
AirPro News analysis
The sale of the first Do228 NXT demonstrates sustained market demand for rugged, unpressurized utility turboprops capable of operating from austere airstrips. By classifying the NXT upgrades as minor changes, GA-ATS avoided the extensive costs and delays associated with a new type certification. We view this regulatory strategy, combined with the decision to vertically integrate wing production, as a pragmatic approach to reviving a legacy airframe. The choice of an NGO as the launch customer aligns perfectly with the aircraft’s historical strength in the special mission and humanitarian sectors, where payload flexibility and short-field performance outweigh the need for pressurized cabin comfort or high-speed cruise.
Sources: General Atomics AeroTec Systems
Photo Credit: General Atomics AeroTec Systems
Commercial Aviation
NHV Group Launches Airbus H160 European Offshore Operations
NHV Group begins North Sea H160 operations from Den Helder, marking the type’s European offshore energy debut.
NHV Group has commenced European offshore energy operations with two Airbus H160 helicopters, marking the aircraft type’s regional debut in the demanding North Sea and Baltic Sea sectors.
The aircraft are leased from GD Helicopter Finance (GDHF) and operate primarily out of NHV Group’s base in Den Helder, Netherlands. They will support crew change missions for both the oil and gas and offshore wind industries. In a press release issued on June 9, 2026, Airbus Helicopters confirmed the entry into service and emphasized the platform’s role in addressing regional demand for updated technology and fuel-efficient fleet solutions.
Expanding North Sea capabilities
The deployment of the Airbus H160 in Europe follows a phased introduction by NHV Group. The operator took delivery of the first of the two leased helicopters on April 15, 2026, with commercial flights scheduled to begin in May 2026. While the primary operational hub is Den Helder, the aircraft offer the flexibility to deploy across other European locations as mission requirements dictate.
NHV Group views the addition as a strategic enhancement to its medium helicopter fleet. The company aims to leverage the new technology to improve operational flexibility for its energy sector clients.
“The addition of the H160 represents another important step in NHV’s growth journey. By expanding our medium helicopter fleet with this next-generation aircraft, we strengthen our operational offering, enhance flexibility for our customers, and position the company for future opportunities in both existing and emerging markets,” said Lars-Henrik Thorngreen, CEO of NHV Group.
Leasing and global fleet integration
The introduction of these aircraft is facilitated by GDHF, which provided the leasing arrangement for the two Airbus H160s. This partnership follows a December 2025 announcement detailing GDHF’s plan to acquire NHV Group, signaling a deepening integration between the lessor and the operator.
“GDHF is delighted to support NHV with the introduction of the H160 for offshore energy missions in Europe. This aircraft sets a new standard for offshore operations and reinforces our focus on delivering efficient, next-generation helicopters to our customers,” stated Michael York, CEO of GD Helicopter Finance.
Airbus Helicopters designed the H160 to meet the evolving needs of the energy sector, focusing on performance, efficiency, and passenger comfort. Regis Magnac, Head of Energy, Leasing and Global Accounts at Airbus Helicopters, described the European offshore debut as a proud moment for the manufacturer, noting that the platform represents a massive leap forward in operational capabilities.
Broader offshore adoption
While this marks the Airbus H160’s first foray into the European offshore energy market, the aircraft has already established an operational footprint in other regions. The helicopter has previously conducted offshore missions in the Gulf of Mexico and along the Brazilian continental shelf.
The broader offshore helicopter services market has seen increasing adoption of the type. In November 2025, Bristow Group expanded its own offshore fleet by introducing the Airbus H160 for energy operations, indicating a growing industry trend toward next-generation medium-twin helicopters.
AirPro News analysis
We view the introduction of the Airbus H160 into the North Sea as a critical proving ground for the medium-twin helicopter market. The North Sea environment is notoriously demanding, requiring high dispatch reliability, robust anti-icing capabilities, and stringent safety standards. If the H160 performs well in these harsh conditions, it could accelerate fleet renewal cycles for operators looking to replace older medium-lift airframes. The aircraft’s fuel efficiency aligns closely with the stricter emissions targets currently being implemented by European energy producers. This capability potentially gives the platform a competitive edge in future offshore contract bids as operators prioritize environmental compliance alongside operational safety.
Sources: Airbus
Photo Credit: Airbus
Route Development
JFK New Terminal One ESG Report: Microgrid and Solar Array
JFK’s New Terminal One releases its first ESG report, detailing a 12-MW microgrid and the largest rooftop solar array on any U.S. airport terminal.
The consortium behind The New Terminal One at John F. Kennedy International Airport (JFK) published its inaugural Environmental, Social and Governance (ESG) report on June 11, 2026, detailing the integration of a 12-megawatt microgrid and the largest rooftop solar array on any United States airport terminal.
Released in partnership with Manufacturers Schneider Electric and AlphaStruxure, the report outlines the facility’s energy resilience strategy. The terminal is a central component of the Port Authority of New York and New Jersey (PANYNJ) $19 billion airport-wide redevelopment program. According to the official press release, the project relies heavily on sustainable infrastructure financing, supported by more than $3.9 billion in green bonds issued across 2024 and 2025.
Microgrid and energy resilience
The terminal’s energy strategy centers on a 12-megawatt microgrid delivered by AlphaStruxure, a joint venture between Schneider Electric and The Carlyle Group. The system is provided under an Energy-as-a-Service (EaaS) model. This structure allows the terminal operators to secure long-term energy cost predictability without upfront capital expenditure.
The microgrid incorporates 13,000 rooftop solar panels, six onsite fuel cells, and a backup battery storage system. This infrastructure is designed to maintain terminal operations during regional grid disruptions and extreme weather events. Industry reporting from Facilities Dive indicates the microgrid will enable the terminal to meet 50% of its projected energy demand for the year 2050.
Chris Collins, Senior Vice President of Digital Buildings at Schneider Electric, stated that the terminal demonstrates how advancing energy technologies can help large-scale infrastructure reduce environmental impact and enhance operational reliability.
Terminal scale and phased opening
The New Terminal One represents a $9.5 billion investment within the broader JFK redevelopment. The facility spans a 134-acre footprint and will encompass 2.6 million square feet upon full completion. The terminal is designed to serve 23 million passengers annually.
The first phase of the terminal is scheduled to open in 2026. This initial phase includes new arrivals and departures facilities along with an initial 14 gates. When fully completed, the terminal will feature 23 gates.
“As we build a transformational international travel experience in the United States, Sustainability and resilience are not add-ons; they are foundational,” said Uzoamaka N. Okoye, Chief of Staff for The New Terminal One at JFK.
Alignment with Port Authority targets
The sustainability initiatives detailed in the ESG report align with broader regional environmental goals. The PANYNJ has established targets to achieve 100% zero-carbon electricity by 2040 and reach net-zero emissions across its facilities by 2050.
The integration of Schneider Electric EcoStruxure software will manage the complex energy inputs and outputs of the microgrid. This digital management system is intended to optimize efficiency as the terminal scales up operations over the coming decades.
AirPro News analysis
The reliance on an Energy-as-a-Service model for the New Terminal One microgrid highlights a shifting approach to airport infrastructure funding. By transferring the capital expenditure of a 12-megawatt power system to a joint venture like AlphaStruxure, airport developers can integrate advanced resilience features, such as fuel cells and extensive solar arrays, without inflating the initial construction budget. As extreme weather events increasingly threaten regional power grids, we expect to see more tier-one international hubs adopt decentralized microgrids to ensure continuous operations and protect revenue streams during wider outages.
Sources: Schneider Electric
Photo Credit: Schneider Electric
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