Air New Zealand has signed a landmark agreement with Neste, the world's leading producer of sustainable aviation fuel (SAF), for the supply of 23,000 tons (30 million liters) of Neste MY Sustainable Aviation Fuel. This marks the airline's largest purchase of SAF to date.

The Neste MY Sustainable Aviation Fuel will be used at Los Angeles (LAX) and San Francisco (SFO) international airports until February 2026. This follows earlier successful deliveries of Neste-produced SAF to Air New Zealand at LAX in 2024 and Auckland Airport in New Zealand in 2022.

The sustainable fuel will be blended with conventional jet fuel before use to meet the required jet fuel specifications. Neste will leverage its existing fuel supply infrastructure at both US airports to ensure seamless delivery.

This agreement represents a major milestone for Air New Zealand, contributing 1.6% of its total fuel supply for the 2025 financial year and achieving its SAF target for the year.

“This purchase represents 1.6% of Air New Zealand’s total fuel supply for our financial year 2025 meaning we will reach our SAF target for the year. It is still a very small proportion of our total fuel use but it is four times more than the volume of SAF we used in our financial year 2024, so I am very happy with the trajectory. Like all airlines, we urgently need to move away from our high reliance on fossil fuels as quickly as we can, and securing year-on-year higher volumes of SAF is critical,” said Kiri Hannifin, Air New Zealand's Chief Sustainability and Corporate Affairs Officer.

Neste is equally enthusiastic about the collaboration, recognizing the importance of partnerships in advancing sustainable aviation practices.

“We are proud to support Air New Zealand’s efforts to increase their use of SAF to reduce aviation emissions. This supply of our Neste MY Sustainable Aviation Fuel at Los Angeles and San Francisco airports is another great step in our cooperation, and we are looking forward to continuing working together with Air New Zealand to help them reach their climate goals,” said Alexander Kueper, Vice President Renewable Aviation Business at Neste.

Sustainable Aviation Fuel: A Greener Path for Aviation

Sustainable aviation fuel (SAF) is a renewable alternative to conventional jet fuel, offering a significantly reduced environmental impact. Using Neste MY Sustainable Aviation Fuel can reduce greenhouse gas emissions by up to 80% over the fuel's life cycle compared to fossil-based jet fuel. This is achieved by producing SAF from 100% renewable waste and residue raw materials, such as used cooking oil and animal fat waste. Importantly, SAF blends seamlessly with conventional jet fuel, working with existing aircraft engines and fueling infrastructure.