American Airlines and Google Sign Record SAF Deal, Cutting 300,000 Metric Tons of Carbon Emissions

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HomeBusinessAmerican Airlines and Google Sign Record SAF Deal, Cutting 300,000 Metric Tons...

American Airlines and Google ink the largest-ever airline–corporate SAF certificate deal — 35 million gallons over three years — to slash nearly 300,000 metric tons of CO₂e and create a new blueprint for aviation decarbonization.

American Airlines and Google on Monday announced the largest publicly disclosed sustainable aviation fuel (SAF) certificate agreement between an airline and a single corporate customer, committing to 35 million gallons of SAF over three years with projected lifecycle emissions reductions of nearly 300,000 metric tons of carbon dioxide equivalent.

The deal — announced June 8–9, 2026 — centers on sustainable aviation fuel delivered through existing fueling infrastructure at Chicago O’Hare International Airport. Under the arrangement, American Airlines purchases and uses the fuel blended into its operations at O’Hare, while Google receives the associated environmental attributes — the carbon-reduction credits — through the SAFc Registry, a book-and-claim system that issues, tracks, and retires SAF certificates.

The structure allows Google to apply the emissions benefit against its employees’ business travel without requiring those employees to physically fly on aircraft burning that specific fuel. SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared with conventional jet fuel, depending on feedstock and production methods.

“Our industry-leading agreement with Google is a critical step forward in reducing emissions from our operations. By working with leaders like Google who share our commitment to innovation, we’re helping to grow demand for SAF and support the development of a stronger, more resilient market,” said Jill Blickstein, American Airlines’ chief sustainability officer and vice president of sustainability.

“This strategic collaboration with American Airlines demonstrates how companies can work together to scale critical sustainability technologies,” said Kate Brandt, Google’s chief sustainability officer.

The American–Google agreement also enabled American Airlines to secure a new long-term SAF offtake arrangement with Valero Marketing and Supply Company. The fuel — produced from waste-based feedstocks, including used cooking oil — will be delivered through O’Hare’s existing airport infrastructure.

Illinois’ Sustainable Aviation Fuel Purchase Credit, which provides $1.50 per gallon for SAF sold or used in the state through December 31, 2032, helped make the O’Hare delivery commercially viable by narrowing the cost gap against conventional jet fuel.

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“Illinois is proud to be at the forefront of the clean energy industry. This agreement demonstrates how our nation-leading SAF tax credit can bring industry leaders together as we work toward a more sustainable future,” Gov. JB Pritzker said.

Why Airlines Need Corporate Fuel Partners

Sustainable aviation fuel is widely considered aviation’s most critical near-term decarbonization tool. The International Air Transport Association estimates SAF could deliver up to 65% of the emissions reductions needed for the industry to reach net-zero carbon by 2050 — a target formally adopted by ICAO member governments at the ICAO Assembly in Montreal in October 2022. Yet in 2025, SAF represented roughly 0.6% of global jet fuel consumption, with production reaching approximately 1.9 million metric tons. Output growth is projected to slow, reaching approximately 2.4 million metric tons in 2026.

Cost is a central obstacle. SAF currently runs two to three times the price of conventional jet fuel, according to Blickstein. American Airlines used approximately 14 million gallons of SAF in 2025, she said at an industry forum in June 2026.

To bridge the cost gap, airlines and fuel producers have increasingly turned to corporations with large employee travel footprints. SAF certificates allow these companies to support lower-carbon aviation and count the emissions benefit toward Scope 3 targets from business travel, even when employees are not aboard aircraft burning that specific fuel.

Google is not the first major corporation to pursue this approach. Bank of America, Aon, Rolls-Royce, and Microsoft have all participated in SAF certificate programs through platforms including Avelia and the SAFc Registry. In July 2024, the Sustainable Aviation Buyers Alliance announced that its corporate members had committed to purchasing SAF certificates covering nearly 50 million gallons of SAF across approximately 20 corporate customers, four fuel providers, and three airlines — representing close to $200 million in investment and potential reductions of around 500,000 metric tons of CO₂ equivalent.

The American–Google bilateral agreement, at 35 million gallons from a single corporate partner, approaches the scale of that entire collective.

The SAFc Registry itself surpassed 500,000 metric tons of CO₂ equivalent abated as of February 2026 and had issued certificates representing more than 164,000 metric tons — approximately 54 million gallons of neat SAF — since its launch in the fourth quarter of 2023.

Part of a Broader Collaboration

The SAF deal extends a wider sustainability partnership between American Airlines and Google. Between January 15 and May 13, 2025, the two companies — working with Flightkeys and Contrails.org — conducted a 17-week contrail-avoidance trial across 2,400 transatlantic flights, integrating AI-driven contrail forecasts into American’s flight planning software. The 112 flights that successfully followed contrail-avoidance plans achieved a 62% reduction in contrail formation compared to a control group, with no statistically significant increase in fuel burn. An earlier 2023 trial across 70 flights had produced a 54% reduction in contrails.

Scale and Significance

Viewed against the full scope of the industry’s fuel needs, 35 million gallons over three years remains a fraction of what major carriers consume annually. Expanding SAF supply to meet net-zero targets will require billions of dollars in new investment and years of additional production capacity.

Still, the structure of the American–Google deal may carry more long-term weight than its size alone. The agreement illustrates how cooperation among an airline, a corporate partner, a fuel producer, and a state government can make a SAF delivery commercially feasible. If more corporations follow Google’s lead, SAF certificates could become one of aviation’s most effective tools for financing the transition from niche fuel supplies to large-scale commercial production.

Key Takeaways

  • American Airlines and Google signed the largest publicly disclosed SAF certificate agreement between an airline and a single corporate customer — 35 million gallons over three years at Chicago O’Hare, projected to cut nearly 300,000 metric tons of COâ‚‚ equivalent.
  • Under the SAFc Registry’s book-and-claim system, American takes physical delivery of the SAF and uses it in its operations, while Google claims the associated environmental attributes against its Scope 3 business travel emissions.
  • Illinois’ $1.50-per-gallon SAF purchase credit, running through December 31, 2032, helped make the O’Hare delivery commercially viable and directly catalyzed the agreement.
  • The deal enabled American Airlines to secure a new long-term SAF offtake arrangement with Valero Marketing and Supply Company, expanding the U.S. SAF supply chain.
  • IATA projects SAF must deliver up to 65% of aviation’s emissions reductions needed for net-zero by 2050; in 2025, SAF represented just 0.6% of global jet fuel consumption.

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