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$150M SAF Fund Launch by American & Alaska Airlines

October 17, 2025
$150M SAF Fund Launch by American & Alaska Airlines

American Airlines, Alaska Airlines, and oneworld Launch $150M SAF Fund to Revolutionize Aviation Sustainability

American Airlines, Alaska Airlines, and the oneworld Alliance have joined forces to unveil a $150 million Sustainable Aviation Fuel (SAF) Fund in a landmark step toward greener aviation. The creation of this fund signals a bold new chapter in aviation sustainability, setting the stage for a cleaner, lower-carbon future in air travel with the $150M SAF Fund to Revolutionize Aviation Sustainability.

SAF Fund aviation sustainability

The aviation sector has long been under pressure to curb its greenhouse gas emissions. In response, this strategic alliance-backed by Breakthrough Energy Ventures-intends to fast-track the development and deployment of more affordable and scalable sustainable aviation fuel technologies.

Why the $150M SAF Fund Matters

Sustainable Aviation Fuel (SAF) can reduce lifecycle carbon emissions by up to 80% when blended with conventional jet fuel, without requiring major modifications to existing aircraft or fueling infrastructure. The new fund’s objective is to support technologies that drive down cost, increase production scale, and make SAF a viable alternative for more airlines.

Major airlines like American and Alaska are uniquely positioned to deploy SAF at scale, thanks to their large fleets and routes. By investing early, they aim not only to reduce their own carbon footprints but also to catalyze adoption across the industry.

Leadership from American & Alaska Airlines

American Airlines and Alaska Airlines will serve as cornerstone investors in the SAF Fund, backing projects that promise to deliver commercially viable and scalable SAF. Their support helps ensure that airlines of all sizes can gradually shift toward cleaner fuel sources without unsustainable cost burdens.

Alaska Airlines particularly has been advancing fuel efficiency in operations and holds long-term ambitions for net-zero emissions. American Airlines, meanwhile, is leveraging its alliance network and resources to expand SAF usage across key routes and airports.

Oneworld Alliance’s Role and Global Reach

As a global airline coalition, oneworld is leveraging this fund to drive cross-alliance cooperation in SAF uptake. Member carriers-including British Airways and Japan Airlines-stand to benefit from coordinated strategies that accelerate SAF research, production, and usage.

By aligning industry leaders under one umbrella fund, oneworld’s vision is to lower barriers to entry for airlines in every region and promote cohesive global adoption of low-carbon aviation solutions.

Impact on Tourism & Hospitality

Travel and tourism sectors are highly sensitive to airline sustainability. As more flight routes adopt SAF, hotels, resorts, and other hospitality firms benefit from a greener travel ecosystem. Environmental stewardship becomes part of a full travel chain-from flight to lodging.

Many hotels are already embracing sustainable practices-energy efficiency, renewable power, waste reduction-to align with conscious travelers’ expectations. The growth in greener aviation supports these efforts, reinforcing sustainable tourism’s momentum.

Tips for Eco-Conscious Travelers

If you're a traveler who cares about your carbon footprint, consider booking with airlines that contribute to SAF innovation, such as American Airlines, Alaska Airlines, or other oneworld members. This helps support their shift toward low-carbon aviation.

Also, choose hotels and resorts with strong eco-credentials: look for energy-saving features, water conservation, and third-party green certifications. Some properties partner with airlines to offer carbon offset programs-leveraging your trip to contribute to reforestation or renewable energy projects.

Another smart tip: travel during off-peak seasons to reduce congestion, enabling more efficient operations for flights and lodging. Plus, opting for certified sustainable tour operators helps support local ecosystems and communities.

Sustainable Routes & SAF Airlines to Watch

Airlines participating in the SAF fund are expected to be early adopters of green routes. American Airlines is expanding SAF usage across its domestic and international network, while Alaska is targeting routes with altitudes and fuel efficiency benefits. One world members like British Airways and Japan Airlines will also work to integrate SAF in long-haul service.

As SAF technologies mature and costs fall, more airlines are expected to transition flights to blends or pure SAF usage, gradually making sustainable aviation the new norm.

By launching a $150 million SAF Fund, American Airlines, Alaska Airlines, and the oneworld Alliance are signaling a new era of eco-friendly air travel-one built on innovation, scale, and shared responsibility. This initiative marks a turning point, embedding sustainable aviation into the heart of the airline and travel industries.

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