FedEx has entered into an agreement with Neste for the supply of approximately 8,800 metric tonnes (over three million gallons) of blended sustainable aviation fuel (SAF) at Los Angeles International Airport (LAX). The deal represents the largest SAF purchase to date by a U.S. cargo airline at the airport and will cover about 20% of FedEx’s annual jet fuel consumption at LAX.
The agreement marks FedEx’s first large-scale deployment of SAF in the United States. Under the contract, Neste will provide a blended fuel containing a minimum of 30% neat Neste MY Sustainable Aviation Fuel™, derived from renewable waste and residue materials. Fuel deliveries began in May 2025 and are expected to continue for one year.
FedEx’s aviation network accounts for the bulk of the company’s global fuel usage, making it a central focus of its emissions reduction efforts. The company has set a target of achieving carbon-neutral operations by 2040.
Neste, which currently has a global SAF production capacity of 1.5 million tonnes annually, said the agreement demonstrates the growing viability of SAF for air cargo operations. SAF, certified for commercial use and compatible with existing aircraft infrastructure, can reduce greenhouse gas emissions by up to 80% over its lifecycle compared to conventional jet fuel.
