American Airlines and Google Sign 35M-Gallon SAF Deal

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