Finnair and Neste have signed a new agreement which will “gradually and considerably” increase Finnair’s use of sustainable aviation fuel (SAF) in its operations. The new partnership will be a key contributing factor in Finnair’s long-term target of carbon neutrality.
Sustainable aviation fuels—assuming large-scale availability—could be a key part of the long-term solution for reducing the CO2 footprint of aviation, as they reduce the CO2 emissions by up to 80% compared to fossil fuels.
The partnership will not only increase Finnair’s use of sustainable aviation fuel, but it will also boost the production of sustainable aviation fuel in Finland. Growing availability is also important in order to make sustainable aviation fuel more widely used and affordable for Finnair’s future flight operations.
We are excited about increasing the use of sustainable aviation fuel in our operations from our Helsinki hub. Sustainable aviation fuels are a key part of our long-term plan for carbon neutrality—by the end of 2025, we expect to spend some 10 million euros annually on sustainable aviation fuels. Developing a healthy SAF market requires commitment from forerunners, and we are happy to be leading the way with Neste.—Finnair CEO, Topi Manner
As an indicator of scale, Finnair reported that for fiscal 2019, fuel costs, including hedging results and emissions trading costs, increased by 18.3% to €687.3 million. Of this cost increase, €42 million is due to the increase in fuel price paid; Finnair’s capacity growth explains the remainder.
Thus, on an expense basis, Finnair is looking at about a 1.5% SAF component, baased on 2019 results.
Finnair will encourage its customers to support the use of sustainable aviation fuel by offering integrated ticket solutions which will include a sustainable aviation fuel option later this year and will match the contributions customers make to sustainable aviation fuel with its own purchases. Finnair will also use sustainable aviation fuel to decrease the CO2 footprint of its own staff duty travel.
In addition, Finnair, the Finnish airport operator Finavia and Neste are working together to define ways for corporate customers to be able to reduce the CO2 footprint of their travel with sustainable aviation fuel.