Air New Zealand inks its largest deal for sustainable aviation fuel

Air New Zealand and Neste have signed an agreement for nine million litres of neat Neste MY Sustainable Aviation Fuel™.
15 April 2024

The deal represents the largest purchase of sustainable aviation fuel (SAF) from Neste by any airline outside North America and Europe for delivery before the end of 2024.

Produced at Neste's Singapore refinery, which expanded its SAF production capability last year, the nine million litres of SAF will be blended with conventional jet fuel to meet the required specifications and supplied to Los Angeles International Airport between 1 April and 30 November 2024.

The SAF is expected to deliver a reduction of carbon emissions by up to 80%* over the life cycle of the fuel compared to using fossil jet fuel, which includes its production as well as transport emissions.

Air New Zealand's Chair Dame Therese Walsh is in Singapore on a business delegation to South East Asia led by New Zealand Prime Minister Christopher Luxon.

"Decarbonising Air New Zealand's operations is essential for the airline's long-term ability to connect New Zealanders to the world, as well as support the country's trade and tourism sectors, and SAF is a key enabler of this", says Walsh.

"Sustainable aviation fuel is currently the only solution to significantly reduce emissions from long haul flight, but it currently makes up less than 1% of the global fuel supply. For aviation to reach its net zero carbon emissions goals by 2050, the SAF industry will need to scale significantly."

"While the SAF supply is small compared with the airline's overall fuel use, it is nine times the size of Air New Zealand's first shipment of SAF from Neste in 2022 and demonstrates growing cooperation between two like-minded organisations to advance the supply and use of SAF. 

Alexander Kueper, Vice President Renewable Aviation at Neste says Neste is fully committed to supporting the decarbonisation of aviation and is working closely together with partners like Air New Zealand to accelerate SAF usage.

"We are proud to support Air New Zealand's decarbonisation focus and are looking forward to continuing working together with Air New Zealand and the New Zealand Government to reach their climate goals."

Prime Minister Christopher Luxon says Air New Zealand is continuing to lead the way in sustainable aviation fuel alternatives.

"It is a pleasure to be with the company as they reach another milestone.

"This collaboration is world-leading and I congratulate Dame Therese and Air New Zealand for their commitment to sustainable aviation," says Mr Luxon.



*The reduction of lifecycle carbon emissions of up to 80% referred to above is when SAF is used in neat form (i.e. unblended) and calculated with established life cycle assessment (LCA) methodologies, such as CORSIA methodology.

Air New Zealand's total fuel uptake over the period 1 April to 30 November 2024 across its network is expected to be 850 million liters.


Issued by Air New Zealand Communications.

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About Air New Zealand

Air New Zealand's story started in 1940, first taking to the skies between Auckland and Sydney on a flying boat - a Short S30. Known for its warm Kiwi hospitality, today, the airline has operating aircraft ranging from Boeing 787-9 Dreamliners and Airbus A320s to ATRs and Q300s, offering customers comfort in the latest most efficient jets and turboprops. It's a modern fuel-efficient fleet with an average age of 8.7 years. Air New Zealand's global network of passenger and cargo services centres around New Zealand. In 2023, the airline flew more than 16 million passengers. Air New Zealand was named 2024 World's Safest Airline by the Australian rating service, highlighting the airline's laser-focus on safety, and won Best Corporate Reputation in New Zealand in 2023 – the 9th year in a row.  

Air New Zealand has a well-connected domestic business, connecting customers and cargo to 20 different regions around New Zealand. Internationally, the airline has direct flights to major cities across Australia, Asia, the Pacific Islands and the US, and through its strong relationships with alliance partners, offers customers more choice and convenience to connect further afield to hundreds of destinations. Air New Zealand has a particular focus on sustainability and its Sustainability Framework helps guide the airline's efforts in tackling some of New Zealand's and the world's most complex challenges. Airpoints, Air New Zealand's loyalty programme, is seen as the most valuable loyalty programme in New Zealand with more than 4 million members. It allows members to earn Airpoints Dollars™ and Status Points for VIP benefits in the air and on the ground. Air New Zealand aircraft are proudly identified by its distinct tail livery of the Mangōpare, the Māori symbol of the hammerhead shark which represents strength, tenacity, and resilience.


About Star Alliance

Air New Zealand is proud to be a member of Star Alliance. The Star Alliance network was established in 1997 as the first truly global airline alliance to offer worldwide reach, recognition and seamless service to the international traveller. Its acceptance by the market has been recognized by numerous awards, including the Air Transport World Market Leadership Award and Best Airline Alliance by both Business Traveller Magazine and Skytrax. The member airlines are: Aegean Airlines, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, EGYPTAIR, Ethiopian Airlines, EVA Air, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shenzhen Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Turkish Airlines, THAI and United. Overall, the Star Alliance network currently offers more than 18,500 daily flights to 1,321 airports in 193 countries.