Cathay Group and Neste Expand Global Sustainable Aviation Fuel Deal

Cathay Group has expanded its strategic partnership with Neste to broaden the supply of sustainable aviation fuel (SAF) across Europe, the United States, and the Asia-Pacific region. The move reinforces Cathay’s long-term commitment to decarbonising its flight operations and scaling the use of SAF as a core pillar of its climate strategy.

Under the expanded agreement, Cathay will source increased volumes of Neste MY Sustainable Aviation Fuel, one of the most widely used SAF products in commercial aviation today. The fuel can reduce lifecycle greenhouse gas emissions by up to 80% compared with conventional fossil jet fuel, depending on the feedstock and production pathway. By extending the partnership beyond its initial scope, Cathay is positioning itself to access SAF at multiple international hubs, improving flexibility and supporting wider operational adoption.

“SAF continues to play an important role in our decarbonisation journey as the most viable solution today for addressing emissions associated with flying,” said Kristof Van Passel, Head of Procurement Operations and Sustainability at Cathay Pacific. He added that expanding collaboration with trusted suppliers such as Neste is essential to building a reliable SAF supply chain while the industry works toward longer-term technological solutions.

The aviation sector continues to face mounting pressure from governments, regulators, and customers to reduce carbon emissions. While next-generation aircraft and propulsion technologies remain years away from large-scale deployment, SAF is widely viewed as the most effective near- to medium-term option for cutting aviation emissions without requiring changes to aircraft or infrastructure. As a drop-in fuel, SAF can be blended with conventional jet fuel and used within existing supply systems.

Cathay Group’s expanded agreement with Neste aligns with broader industry efforts to accelerate SAF uptake, even as supply remains limited and costs remain significantly higher than traditional jet fuel. Airlines adopting SAF at scale often cite the importance of long-term supplier partnerships to provide certainty, support investment in production capacity, and gradually bring down costs through increased volumes.

Neste, one of the world’s leading SAF producers, has been actively expanding its global production footprint to meet rising demand from airlines and corporate customers. The company’s renewable aviation fuel is produced from sustainably sourced renewable waste and residue materials, supporting circular economy principles while delivering meaningful emissions reductions.

For Cathay, the expanded SAF partnership supports its ambition to achieve net-zero carbon emissions by 2050. The group has also been working with corporate customers, regulators, and industry partners to stimulate SAF demand and explore innovative procurement models. By extending its SAF sourcing across multiple regions, Cathay aims to embed sustainable fuel more deeply into its global operations, demonstrating how international airlines can take practical steps toward decarbonisation despite ongoing market and supply challenges.

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Sources: AirGuide Business airguide.info, bing.com