DHL signs five-year deal to use sustainable aviation fuel for air cargo

DHL Group has signed a five-year agreement to use sustainable aviation fuel (SAF) for its air cargo operations, expanding its partnership with IAG Cargo as the logistics major steps up efforts to reduce emissions from flying.

The deal, announced in a company statement, will enable the use of approximately 240 million litres of SAF at London Heathrow Airport over the contract period, covering a significant share of DHL Express shipments transported on British Airways flights.

Scale of the agreement

According to DHL, the agreement — alongside a previous renewal in 2025 — will allow the company to secure around 40 million litres of SAF annually, translating into an estimated reduction of 640,000 tonnes of carbon dioxide equivalent (CO2e) on a lifecycle basis.

The fuel will be used across IAG Cargo’s network, covering nearly all fuel attributed to transporting DHL Express cargo within that system.

The SAF used in the arrangement is certified and produced from renewable sources such as used cooking oil, and can achieve around 90% lower lifecycle greenhouse gas emissions compared with conventional jet fuel, the company said.

The initiative is also supported by a separate framework agreement involving DHL Global Forwarding, aimed at expanding access to sustainable fuels across the group’s operations.

This broader arrangement could lift total emissions reductions across DHL Group to more than 1 million tonnes of CO2e on a lifecycle basis.

The move reflects a wider strategy to secure stable supply of alternative fuels as demand grows from customers seeking lower-emission logistics options.

Industry collaboration and comments

Executives from both companies framed the agreement as part of a wider industry effort to scale sustainable aviation fuel.

“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” said Travis Cobb, EVP Global Network Operations & Aviation at DHL Express, in the company statement.

He added that the partnership would expand DHL’s ability to reduce emissions on key trade routes.

Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said the collaboration builds on a longstanding relationship and will support the delivery of more sustainable air freight solutions.

Context: A growing but limited fuel option

Sustainable aviation fuel is widely seen as one of the most immediate pathways to reducing aviation emissions. It is produced from renewable or recycled sources and reduces emissions primarily through its production process rather than at the point of combustion.

However, its adoption remains limited. According to the DHL statement, SAF is currently three to four times more expensive than conventional jet fuel and accounts for only a small share of total aviation fuel usage globally.

Regulatory frameworks such as the European Union’s ReFuelEU Aviation initiative are pushing for a gradual increase in SAF use, setting targets for fuel suppliers to blend cleaner fuels into conventional supplies.

With aviation under pressure to cut emissions without compromising operations, long-term fuel agreements are becoming a key tool for airlines and logistics firms.

For DHL, the latest deal supports its target of raising the share of sustainable aviation fuel in its operations to 30% by 2030. More broadly, such partnerships highlight how supply certainty — rather than just technology — may determine how quickly cleaner aviation fuels scale in the years ahead.