Download as pdf or txt
Download as pdf or txt
You are on page 1of 51

SUSTAINABLE AVIATION OUTLOOK REPORT 2024

CONTENTS
THE STATE OF SUSTAINABLE AVIATION IN 2024 6
THE SURVEY 10
PART I - CURRENT LANDSCAPE 12
10 FACTS TO KNOW ABOUT SUSTAINABLE AVIATION 14
THE INDUSTRY, IN NUMBERS 16

PART II - AIRLINE OUTLOOK 22


BUILDING SUSTAINABILITY TEAMS 24
STRATEGY 28
PERCEPTION OF SUSTAINABILITY 32
SUSTAINABILITY INITIATIVES 36
BUDGET AND FUTURE OUTLOOK 40

CONCLUSION 44
APPENDICES 46
PARTNERS 47
LIST OF PARTICIPATING AIRLINES 48

2
WELCOME
For over 15 years, SimpliFlying has been a trusted partner to airlines, airports,

S
and technology firms worldwide. We have been on a mission to help build trust in
aviation. To empower the industry to soar to new heights through digitalisation,
innovation, and a steadfast commitment to sustainability.
We're not just sought after strategy consultants, we are passionate advocates
for meaningful change. Headquartered in Singapore, our global team based out of
Canada, India, Spain and the UK is dedicated to equipping aviation and technology
executives with the tools, insights, and strategies needed to navigate the
complexities of sustainable aviation.
From major airlines and airports to aircraft manufacturers and travel technology
companies, our extensive client base underscores our reputation as a trusted
partner in the aviation industry since 2008.

3
SUSTAINABLE AVIATION OUTLOOK REPORT 2024 HOW CAN WE HELP?

HOW CAN WE HELP?


At SimpliFlying, we're committed to helping you navigate the complexities of
sustainable aviation and thrive in an ever-changing landscape.
Here are some ways we can help you in your sustainability journey:

Share your vision with a global audience


Like 80+ other CxOs in the industry, enlist your CEO or Head of Sustainability to
be interviewed by Shashank Nigam. Share your vision for the future of travel on the
world’s best-known sustainable aviation podcast "Sustainability in the Air". Find out
more on becoming a partner.

Build thought leadership through bespoke reports


Harness the power of our research and analysis with custom reports tailored to your
unique objectives. We can help you build thought leadership on a particular topic
that you would like to "own".

Grow your brand in aviation


SimpliFlying has helped a multitude of technology firms scale up in aviation – from
launching an airplane to marketing an Airbus A380 engine. We can help you amplify
your brand and help build awareness with key decision-makers.

Stay informed, stay ahead


We deliver in-depth monthly or quarterly briefings to the senior leadership teams
on a topic/issue of your choosing. You can also sign up for a series of briefings that
cover key aspects of the present and future of sustainable aviation.

Connect with investors and customers


Our in-person workshops and virtual events can help you discover innovative ideas
as you network with like-minded innovators, and unlock new opportunities.

Get in touch!

4 4
THE SURVEY

Photo by Andre Tan on Unsplash

5
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

THE STATE OF SUSTAINABLE


AVIATION IN 2024
Let’s be honest. If you’re reading this report you do
not need a re-telling of the hard facts. You know that
the aviation industry is going to be incredibly hard
to decarbonise. You know that despite the seemingly
insurmountable challenge ahead of us, the industry
is committed to our 2050 net zero goal and many
significant approaches are being explored. You know
that if we do nothing, our current contribution of
2-3% to global emissions will increase to as much as
25% by 2050.
Most of all, you know the simple, inexorable fact:
the world is already reeling from the climate crisis
– record temperatures, heatwaves, floods, wildfires,
ecosystem damage, loss of livelihoods and economic
distress all threaten not just our future but the
present as well.
The ship of considering whether to do anything
about climate change has already sailed; the
question now is how quickly we can decarbonise.

What can the industry do about sustainability?


Of course, the question of what the industry can do is rife with controversy, speculation
and divided opinions. Is net zero by 2050 realistic? Is it equitable for all? Do we have the
money to make it happen? Will customers support it? Can we decarbonise at all without
bankrupting airlines or dramatically increasing prices?
The pathways, too, are hotly contested. Only sustainable aviation fuel (SAF) is available
at present as a significant lever to decarbonise. There, too, significant challenges remain.
It is far more expensive than jet fuel; its availability is far too insignificant; and how to
source the feedstocks and renewable energy required for production is unclear at best,
and completely unfeasible at worst.
Other technologies – hydrogen, electric or hybrid versions of both – are years away from
commercial entry despite significant movement and investment. Carbon offsets have
lost their sheen and, in fact, have been decried as fraudulent and ineffective by multiple
studies conducted over the past few years.

6
THE STATE OF SUSTAINABLE AVIATION IN 2024

Our report offers answers


In such a scenario, an airline executive working in sustainability might be tempted to give
in to hopelessness or despair. We attempt to provide an antidote to such pessimism. Yes,
there are no easy solutions, and the path to decarbonisation is going to be hard. Yes,
the impact of investments may not be seen for a few years. Yes, it’s hard to pass on the
additional costs to customers while remaining competitive and profitable.
Our inaugural Sustainable Aviation Outlook report offers hope, reassurance, answers and
some helpful suggestions along the way:

Better together: First of all, airlines must remember that sustainability is


about cooperation, not competition. It is in the industry’s collective interest to
decarbonise. The way forward is by recognising we’re in it together.

Learn what’s being done today: By surveying a selection of airlines that are
investing significantly in sustainability, we want to show how your peers are
going about the business of decarbonisation across five key categories: team
structure; strategy; managing perceptions; sustainability initiatives; and budget
and future outlook.

Incremental but immediate solutions: Even if you despair that there are
no immediate solutions, there’s no reason to shy away from incremental
approaches that add up. No SAF? No problem. Take a different approach
to optimisation. Perhaps fleet renewal. Perhaps by investing in eco-piloting
measures and technologies that can reduce hundreds of kgs of CO2 emissions
per aircraft per day.

Start the work: Most of all, do not wait for the perfect solution. Your peers
believe they can do something today. Believe in them, believe with them. Do
not think 2050 is someone else’s problem. The work being done today will
determine how quickly the industry can meet its net zero target.

Know where we stand: The first part of our report (with our partners Cirium
and Envest) offers an industry overview in terms of how various regions and
routes stack up in terms of relative and overall emissions.

7
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

10 ways to say yes to sustainability

1 Will decarbonising be hard? NO YES

2 But do airlines nonetheless think they can get to net zero emissions? NO YES

3 Can something be done today? NO YES

4 Can something be done today without passing the costs on to customers? NO YES

5 Can something be done today that is not SAF, SAF and SAF? NO YES

6 Can something be done today that is economically beneficial to airlines? NO YES

7 Is it important for the entire company to believe in sustainability? NO YES

8 Is it essential to resist the urge to indulge in greenwashing? NO YES

9 Are airlines investing more and more in sustainability? NO YES

10Do airlines believe in the hard work of sustainability? NO YES

8
THE STATE OF SUSTAINABLE AVIATION IN 2024

Why we need to get started today


While the aims of protecting the the love of air travel and would do well to
environment and the planet might appear recognise the risks to it. The world today is
grandiose, virtuous and self-satisfying, increasingly conscious of carbon-intensive
there’s a more pressing reason to industries, and movements such as flight
decarbonise – aviation does not have a shaming are becoming mainstream.
perpetual social licence to operate. We Many companies are consciously cutting
do not have to go too far back in time to business travel – and travel overall as well.
realise this. When the world came to a Some have instituted a “carbon budget”
standstill during the Covid-19 pandemic, that must be adhered to. Many travellers
flying was one of the first casualties and are eschewing planes for trains. Short-
barely anyone grumbled about it. For many, haul flights that can be replaced by trains
flying is dispensable and we must have the have been nixed in France. Other countries
humility to accept it and the perspicacity to might follow soon. The pandemic has
preserve it. already made remote work and meetings
Flying is magical. It makes the world a acceptable; the climate crisis might hasten
better, smaller place. It enables trade, it. Strict regulations in Europe on SAF and
commerce, cultural exchange, and under the Emissions Trading Scheme will
experiences that cannot be replicated make flights more expensive in the years to
through books, films or photographs. Most come.
of us who work in the industry do so for

The threat to aviation is existential and we must recognise it as so. Decarbonisation


is not an option but a necessity. We must do it not only because we care for the
environment but also for the industry and for the love of flying. Airlines must seize
whatever decarbonisation lever they can in the present as they plan for better
solutions in the future. The reason is simple: if you do not start today at your own
pace, you will be forced to do it in future in ways that will be far more damaging to
your business. Do it today. For the planet. For your business. For the love of flying.

Shubhodeep Pal
Chief Operating Officer, SimpliFlying
shubhodeep@simpliflying.com

9
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

THE SURVEY
To gain a deeper understanding of how airlines are approaching sustainability, we
conducted a comprehensive survey of 20 leading carriers from around the world, including
major players such as Air France-KLM, British Airways, Lufthansa Group, All Nippon
Airways, and Southwest Airlines. The survey covered five key areas: team structure,
sustainability strategy, perception of sustainability and communications, sustainability
initiatives, and budget and future outlook.
Our objective was to assess the current state of sustainability efforts within the airline
industry, identify best practices and challenges, and provide insights into how carriers
can effectively integrate sustainability into their business strategies. By examining these
critical aspects of airline operations, we aimed to shed light on the industry's progress
towards a more sustainable future and offer recommendations for further improvement.
The survey was taken by senior executives and sustainability leaders from each
participating airline. The questions were designed to elicit detailed information about
the carriers' sustainability policies, programs, and performance, as well as their plans for
the future. By gathering data from the airlines mentioned above, we sought to capture a
snapshot of the leading sustainability players in the industry.
Ultimately, our goal is to contribute to the ongoing dialogue around aviation sustainability
and support airlines in their efforts to reduce their environmental impact while continuing
to bring the magic of flying to millions across the globe.

10
THE STATE OF SUSTAINABLE AVIATION IN 2024

11
01
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

12
PART I - CURRENT LANDSCAPE

CURRENT
LANDSCAPE

13
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

10 FACTS
TO KNOW ABOUT
SUSTAINABLE AVIATION
1 $5 TRILLION
Decarbonising aviation is going to be
expensive. IATA estimates that the total
cost will be in the range of $5 trillion.
This is a stark contrast to the industry’s
current total R&D spending, which is
about US$23 billion annually.

5000 - 7000 5
2 NEW FACILITIES
IATA estimates thousands of new SAF
44,000 AIRCRAFT facilities will be required for aviation

BY 2050 by 2050. Each facility could cost


upwards of $250m each.
Fossil fuels aren’t going anywhere.
The current airline fleet is
expected to double by 2050 and
will all run on (at best) a blend of
SAF and regular jet fuel.
3

65%
IATA estimates that SAF’s contribution
to achieving net zero by 2050 will be
around 65%. (See chart) 4

0.53%
However, an incredibly small amount of SAF
is currently available. In 2024, even though
SAF production is expected to triple to 1.875
billion litres (1.5Mt), it will account for only
0.53% of aviation’s fuel needs.

For more insights, charts and figures, see: Understanding Sustainable Aviation in 40 Charts.

14
PART I - CURRENT LANDSCAPE

7
CO2
ELECTRIC
FLIGHTS
The earliest commercial
electric flights are expected
8
CARBON
around 2028, most prominently
with Heart Aerospace’s first-
REMOVAL
generation 30-seater battery Many airlines are beginning to
electric-hybrid aircraft. disavow carbon offsets which
have proven controversial, and
are instead focusing on carbon
removal.

9
10%
6
HYDROGEN Operational efficiencies like eco-piloting

FLIGHTS measures, switching off APUs, single-engine

H2
taxi and greener infrastructure can contribute
The earliest commercial to ~10% of net zero targets for aviation.
hydrogen flights are
expected around 2026,
with ZeroAvia and Universal
Hydrogen currently testing
retrofitted aircraft in the
20-40 passenger capacity
range. (Airbus is also
planning a commercial
hydrogen aircraft but only
by 2035.)
FLY LESS – 10
PAY MORE
Customer consensus is leaning
towards decarbonisation. Many
flyers are willing to fly less and
pay more for flights that attempt
to neutralise their emissions.

To learn more about the gamechangers in sustainable aviation, order a copy of our book
“Sustainability in the Air”, featuring companies such as Heart Aerospace and ZeroAvia; and
airlines such as JetBlue and Etihad.

15
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

The industry, in numbers


“He who would learn to fly one day must first learn to
stand and walk and run and climb and dance; one cannot
fly into flying.”
– Friederich Nietzsche

In a recent analysis, Dan Rutherford of the International Council on Clean


Transportation (ICCT) assesses the progress made by comparing the current state
of the industry to four scenarios outlined in the ICCT's Aviation Vision 2050
report. He concludes that while some progress has been made, particularly in
the European Union, the industry is still following the "Action" scenario (the least
ambitious one), which falls short of the Paris Agreement goals. Without significant
effort, aviation risks consuming a substantial portion of the global carbon budget
and contributing to further warming.
There can be no mincing words here. We are staring at a daunting climb to net
zero. Before we delve into the survey results, it's imperative to first grasp the
industry's current landscape and take a hard look at the lay of the land. Where
exactly does aviation stand right now in terms of emissions, fuel efficiency, and
SAF adoption?
In order to examine the macro trends that shape this realm, we have sourced
global industry data from our partners at Cirium and Envest on carbon emissions,
intensity, efficiency, and SAF usage. This will illuminate the industry's present state
and the path forward while underscoring the urgency of our collective actions.

16
PART I - CURRENT LANDSCAPE

Key findings
North America and As one might anticipate, Europe and North America currently
Europe dominate as dominate the industry's carbon footprint, accounting for the
Asia rises lion's share of emissions and fuel consumption. However, this
narrative is poised for a shift, as Asia rapidly gains traction,
positioning itself to overtake its Western counterparts in the
near future. Interestingly, a closer examination reveals that when
the emissions of the top 10 most carbon-emitting airlines are
counted, 80% of them are accounted for by North American and
European airlines.

Concentrations of Unsurprisingly, the routes bearing the heaviest emissions burden


power, concentration are those serving global hubs of trade, finance, and commerce,
of emissions such as Singapore, London, New York, Los Angeles, Dubai, and
Hong Kong.

SAF is rising, slowly The adoption of SAF remains abysmally low, with Air-France-
KLM leading the charge at a meagre 0.6% of their overall fuel
mix in 2022. On the procurement front, however, United Airlines
stands out, having secured offtake agreements for nearly 3
billion gallons of SAF – a commitment that, while commendable,
will materialise over an extended timeframe, potentially spanning
a decade or more.

17
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Pareto focus

It is evident that a concerted, globally coordinated effort is imperative to propel the


industry towards its decarbonisation objectives. While the date might need further
refining, the Pareto principle appears to hold true in this context, suggesting that a
concentrated focus on key airlines, regions, and routes could significantly alter the
industry's trajectory towards sustainability.

The necessity of global equity and inclusivity

The climate crisis is an indiscriminate force, and no region can be left behind in our
collective pursuit of a net-zero future. The industry's efforts must be akin to a rising tide
that lifts all ships equally, without prejudice towards wealth, funding, or geographic
location. Wealthy nations and airlines that have contributed substantially to the current
predicament must shoulder the responsibility of funding their less affluent counterparts.

Greater investment

Capital injection into climate technology and sustainable aviation solutions are imperative
to bridge the funding gap and propel these innovations towards commercial viability at an
unprecedented pace. Public-private partnerships, government incentives, and collaborative
research initiatives must be leveraged to accelerate the development and deployment of
game-changing technologies.

Multi-faceted approach

The industry’s efforts must encompass operational efficiency, technological advancements,


and a diverse portfolio of sustainable fuel sources. While SAF remains a pivotal
component of the solution, we must actively explore and invest in alternative pathways,
feedstocks, and renewable energy sources to ensure a resilient and sustainable future
for the aviation industry. This is suggested by Rutherford as well, who also suggests
implementing broader sustainable aviation fuel mandates, developing more efficient
aircraft, expanding carbon pricing, and considering additional measures such as demand
management and carbon capture.

18
PART IPART
- THEI INDUSTRY,
- CURRENT IN
LANDSCAPE
NUMBERS

Ten airlines with the largest total emissions, by region

North America 48% Europe 33% Middle East 19%

Lufthansa
American Airlines Air France KLM Emirates
Delta Group

Turkish
United Airlines IAG Qatar Airways
Airlines
Southwest Airlines

Source: Envest

Airline CO2 emissions

Source: Cirium

19
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Global routes with the highest CO2 emissions in 2023

Source: Cirium

Top airlines in adopting SAF (2022/2023)

Source: Envest, Airline annual reports

20
PART I - CURRENT LANDSCAPE

21
02
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

22
2
PART II - AIRLINE OUTLOOK

AIRLINE
OUTLOOK

23
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Building sustainability teams


"Change will not come if we wait for some other person or
some other time. We are the ones we've been waiting for.
We are the change that we seek."
– Barack Obama

So how can we actually go about the hard work of changing the industry in the
most dramatic way since planes first started flying?
The answer is simple: We invest in people, in teams and in team structures that are
true to the cause at hand. What this might look like varies from airline to airline
and there are no right answers (yet). Only one thing is true – those truly serious
about their sustainability efforts have established a sustainability function within
their organisations.

24
PART II - AIRLINE OUTLOOK

Key findings
Hybrid teams reign The vast majority of airlines (80%) are adopting a hybrid team
supreme structure for their sustainability efforts, which combines a
dedicated sustainability team with staff distributed across other
functions. This approach allows for a core group of sustainability
experts to drive the agenda, while also embedding sustainability
responsibilities and mindsets throughout the organisation.
In contrast, only 5% of airlines rely solely on a dedicated
sustainability team, suggesting that a more integrated model is
preferred.

Staffing soars Airlines are investing heavily in personnel. Given the early
days of sustainability efforts, it’s striking that 60% of airlines
surveyed have more than 10 full-time staff focused exclusively
on sustainability, while another 35% have between 3-5 dedicated
sustainability employees. This headcount is expected to grow
rapidly, with 65% of airlines projecting they will have over 10 full-
time sustainability staff within the next year.

Chief Sustainability The Chief Sustainability Officer (CSO) role is becoming a


Officers enter the mainstay in airline leadership. While the CSO is the executive
C-Suite most often in charge of directing sustainability strategies (cited
by 55% of respondents), many more airlines (65%) said they’d
prefer having a CSO in charge. The prevalence of this top-level
position demonstrates that sustainability is securing long-term
commitment and resources from senior management and is no
longer a pet side-project for teams.

Leaders, not leader Somewhat surprisingly, respondents felt that sustainability was
too important an issue to be left to a single executive whether in
the C-suite or elsewhere. Many respondents, in fact, suggest that
the responsibility of their airline’s sustainability strategy should
require the involvement of most top management. This suggests
that sustainability is no longer viewed as a siloed initiative,
but rather a strategic, cross-cutting priority that demands
accountability and action from the entire leadership team.

25
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Cross-functional collaboration will be essential

The prevalence of hybrid team models suggests airlines recognise that driving
sustainability progress requires breaking down silos and engaging the entire organisation.
Dedicated sustainability teams bring focus and expertise, but can't do it alone. Airlines
should carefully design their sustainability organisation to foster ongoing cross-functional
collaboration. The teams, skill sets, processes and culture needed to deliver sustainability
goals should be embedded across all key functions, not confined to a specialist group.

Sustainability leadership must be empowered

The growing ranks of CSOs and the shifting perspectives on ideal sustainability leadership
point to the increasing importance of this agenda. Airlines that haven't yet done so
should strongly consider appointing a CSO to provide executive sustainability leadership.
However, a CSO can't drive the sustainability agenda in isolation. Airlines must create
clear mandates, decision-making authority and organisational linkages to ensure the CSO
is empowered to drive change in partnership with other executives. As sustainability
matures into a whole-business strategic priority, airlines should also consider explicitly
adding it to the CEO's remit.

Invest in size but don’t forget skills and budget

For sustainability teams, at least. The trend toward larger full-time sustainability
teams signals a recognition that delivering ambitious decarbonisation goals requires
serious team power. The airlines surveyed appear to be scaling their sustainability
organisations to match the magnitude of the challenge. However, headcount alone is not
enough - airlines must also focus on building the right skill sets by recruiting seasoned
sustainability professionals and upskilling existing staff. Importantly, sustainability teams
must also be resourced with sufficient budgets to drive impact.

All hands on deck

While dedicated teams and executive leadership are critical, ultimately sustainability must
seep through the organisation and become a part of its DNA. In the airline of the future,
sustainability will be part of every employee's job description. Hence, airlines should
invest in engaging and educating the entire workforce around the company's sustainability
vision, goals and strategies.

26
UNDERSTANDING
PART II -THE TECHNOLOGY
AIRLINE OUTLOOK

Team Structure

5% 15% 85%
Dedicated Team Distributed Team Hybrid Team

Team Size
Today: Full-time equivalent staff Next year: Expected people to be working
working exclusively on sustainability full-time on sustainability in a year
1-2

0%

5%

3-5

35%

20%

6 - 10

5%

10%

+ 10

60%

65%

Does your airline have a Chief Sustainability Officer? 65% 35%


YES NO
Currently Ideally
80%

60% 65%

55%

40% 45% 45%


40% 40%

30% 30%
20%
20% 20% 20%
5%
10% 0% 0% 10%
0%
Chief Chief Chief Chief Chief Govt Corporate Other
Sustainability Executive Operating Financial Commercial Relations Affairs
Officer Officer Officer Officer Officer

27
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Strategy

"However beautiful the strategy, you should occasionally


look at the results."
– Sir Winston Churchill

What makes for a great strategy? Is it a plan on a piece of paper? Or is it


something more intangible, driven by a deep philosophical idea? Or perhaps it is
both, a perfect amalgamation of a great idea given form as a concrete plan for
progress or change. Of course, the work doesn’t stop at merely articulating the
strategy – execution is critical. But the starting point matters too. So, for now, let’s
look at how airlines are going about the business of defining their decarbonisation
strategies.

28
PART II - AIRLINE OUTLOOK

Key Findings
Airlines have a plan The majority of airlines (60%) already have a net zero roadmap in
for change place, while another 20% are actively working on developing one.
This widespread adoption of net zero targets signals that the
industry is aligning around the global imperative to decarbonise.

But…those While setting net zero goals is an important first step, only
plans are mostly 42% of airlines have had their targets officially approved by the
unverified Science Based Targets initiative (SBTi) or a similar organisation.
As a result, the credibility and alignment of airline net zero
goals with climate science is still a work in progress. (Earlier this
year, in a move calculated to shake up those paying mere lip
service to sustainability, SBTi dropped 119 companies from its
sustainability rankings for failing to submit concrete targets.)

Is 2050 the Among airlines with a net zero target, the vast majority are
“comfortable” aiming to reach net zero by 2050. In fact, even industry-wide,
target? only two airlines (Alaska Airlines and JetBlue) have set a
more ambitious 2040 target. The convergence around 2050
suggests the industry may be merely adhering to the IATA net
zero commitment. The lack of more aggressive targets raises
questions about whether airlines are prioritising near-term action
enough to effect change.

Reporting ramps up 80% of airlines surveyed now publish an annual sustainability or


ESG report, with another 10% planning to start. This widespread
reporting practice suggests airlines recognise the importance
of transparency and disclosure to their sustainability journey.
However, the 10% not yet reporting on sustainability may face
growing pressure from investors and stakeholders to do so.

29
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Close the net zero gap

Even beyond our survey, it's clear that many airlines need to develop concrete net
zero plans and accelerate their decarbonisation strategy. All airlines should prioritise
developing a comprehensive net zero plan with clear near-term and long-term emissions
reduction targets. Those without a plan must act quickly to avoid falling further behind
the industry curve.

Validate targets to unlock credibility

A plan on paper isn’t enough. Airlines should seek to have their emissions reduction
targets validated by the SBTi or a similar organisation. This independent, third-party seal
of approval can increase the credibility and robustness of airline net zero plans in the eyes
of investors, customers, and regulators. Even those already aiming for net zero by 2050
should pursue official validation.

Strategise and execute faster

While the convergence around the 2050 net zero target is almost a given at this time,
airlines should consider setting more ambitious near-term targets as well. Seeking
inspiration from airlines aiming for earlier milestones like 2040 can help spur sustainability
plans as a key differentiator for customers. It could also enable the rapid deployment
of SAF, next-generation electric and hydrogen propulsion, and operational efficiencies
needed to meet the net zero goal.

Consider quarterly reporting

Airlines may want to consider reporting sustainability progress to external stakeholders


with the same quarterly cadence that many already use for internal updates. More
frequent disclosure can reassure customers, investors and other stakeholders that
airlines are managing their targets proactively. It may also be simpler to align internal and
external reporting processes.

30
PART II - AIRLINE OUTLOOK

YES
60%
NO
Have you published your
Net Zero Roadmap?
2050 target 2040 target
20%
92% 8%

ON IT
20%

Has your net zero roadmap been approved by SBTi


or any similar organisation?

58%
Not approved
42%
SBTi Approved

How frequently do you report sustainability metrics to stakeholders?

Internal stakeholders External stakeholders

80% 85%

60% 55%

40%

20%
15%
5% 5% 5% 5% 5%
10% 0%
0%
Annually Quarterly Monthly When requested Never

31
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Perception of sustainability

"The single biggest problem in communication is the illusion


that it has taken place.”
– George Bernard Shaw

A telling marker of a company’s agenda is how far and how deep its key messages
have seeped into the organisation. For a challenge like decarbonisation, this is
doubly important. The road to net zero will require organisation-wide change and,
as a result, organisation-wide involvement.
The implications are critical. Employees must not only buy into the broad objective
but also actively engage with it. The organisation itself must engage with the task
at hand to ensure that its activities are measured and communicated with key
stakeholders at all levels with regular frequency. This will require humility, constant
introspection and, most of all, an honest reckoning with the challenge ahead.

32
PART II - AIRLINE OUTLOOK

Key Findings
Measurement The vast majority of airlines (85%) report measuring the impact
matters of their sustainability initiatives, suggesting a growing focus
on data-driven accountability. Only 15% do not yet quantify
the outcomes of their sustainability efforts. This widespread
adoption of impact measurement bodes well for the industry's
ability to track and communicate progress toward climate goals.

Awareness begins Airlines are actively driving sustainability awareness among


at home employees through a variety of channels. Trainings and seminars
are the most common tactic (85%), followed by ongoing
awareness campaigns (70%) and newsletters (60%). This multi-
pronged approach to employee education and engagement lays
a strong foundation for embedding sustainability across airline
culture and operations.

Cautious 60% of airlines focus their external sustainability communications


communications primarily on sharing major initiatives and milestones, while 25%
always proactively disclose their progress. 10% only occasionally
communicate about their efforts, and 5% do not discuss
sustainability publicly at all. This relatively conservative approach
likely reflects the challenges of rising greenwashing scepticism.

Stakeholder Airlines perceive sustainability as highly important to most of


expectations their key stakeholders. Interestingly, suppliers are a relative
expected to grow outlier, with 60% seeing sustainability as only somewhat
important to this audience. This stakeholder pressure
underscores the growing business imperative of sustainability
strategy and disclosure.

Collaborative 90% of airlines engage with climate groups and NGOs in some
climate dialogue capacity, with joint workshops/projects and partnerships
is growing being the most common avenues (55% each). 45% participate
in meetings with these stakeholders. Only 10% do not engage
at all. This broad-based dialogue and collaboration with
sustainability experts and advocates is an encouraging sign
that airlines are open to external input and partnership as
they work to decarbonise.

33
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Standardise measurement and reporting

With impact measurement now prevalent across the industry, airlines should align around
shared metrics and methodologies to enable comparative benchmarking and aggregation
of results. Referring to IATA’s Airline Sustainability Reporting Handbook would be a
great start and should become common practice. This can help airlines learn from peers
and build a clearer picture of sector-wide progress. For the minority not yet measuring
sustainability impact, closing this gap should be an urgent priority.

Enlist employees as advocates

The next frontier for airlines should be moving from education to activation by
creating more opportunities for staff to directly participate in and advocate for the
airline's sustainability agenda. (Consider, for example, Wizz Air which has launched a
Sustainability Ambassador programme.) Offering sustainability innovation incentives,
"green team" volunteer programs, and avenues for frontline workers to suggest
operational efficiency improvements can help turn employees into an airline's most
powerful sustainability champions.

Avoid greenwashing, not communications

The risk of greenwashing backlash is real as airlines seek to communicate their


sustainability credentials. But retreating into silence risks ceding the narrative to
critics. The antidote to greenwashing is not less communication, but more authentic
disclosure backed by credible action and engaging storytelling. Airlines should focus
on transparently sharing sustainability challenges alongside successes, setting and
reporting against science-based targets, and elevating customer and employee voices
as third-party validators.

Engage, don’t alienate climate experts

The widespread engagement between airlines and climate NGOs is a promising platform
to build on. Airlines should look for more opportunities to tap the expertise and credibility
of environmental groups when developing and validating their sustainability strategies.
Transformative industry-NGO cooperation can help rebrand aviation as part of the
climate solution.

34
PART II - AIRLINE OUTLOOK

How important is sustainability for your stakeholders?

85% of participants measure sustainability impact

How do you ensure sustainability awareness within the organisation?

Sustainability Sustainability
leaders leaders
network network

5%
Training & seminars
Newsletters
85% 60% None
Ongoing awareness
5%
70%

Do you publicly communicate about Have the claims around corporate


the sustainability initiatives you are greenwashing made you more
undertaking? cautious about talking about
environmental initiatives?

35
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Sustainability initiatives

“By failing to prepare, you are preparing to fail.”


– Benjamin Franklin

The temptation to hold out for a perfect sustainability solution is understandable,


but ultimately misguided. Airlines must resist the allure of this chimera and instead
embrace the hard, unglamorous work of incremental progress. This transformation
cannot be achieved by any single airline working in isolation – it demands
collaboration and collective action across the entire industry.
Remember: the responsibility for this transformation does not rest on the
shoulders of any single airline. The true measure of success will not be the isolated
achievement of one carrier's net zero ambitions, but the collective transformation
of the industry.

36
PART II - AIRLINE OUTLOOK

Key Findings
Operational Airlines are investing heavily in a wide range of infrastructural
efficiencies and operational efficiencies to reduce their environmental
are growing in footprint. Eco-piloting measures lead the pack with 100%
importance adoption, followed closely by waste management and single-
use plastic reduction (90% each), circular resource use and
weight reduction (85% each). Other popular initiatives include
sustainable catering (75%), renewable energy for buildings and
ground equipment (75% and 70%), and noise reduction (70%).
Emerging areas like contrails management and AI/ML are also
gaining traction.

Synthetic fuels are 70% of airlines believe synthetic or e-fuels have the most
widely viewed as potential to become the dominant sustainable aviation fuel of
future saviours the future (see our comprehensive report on SAF pathways).
Biofuels come in a distant second at 15%, with hydrogen, hybrid-
electric and other options garnering just 5% each. This points to
a growing consensus around the key role of power-to-liquid fuels
in aviation's long-term decarbonisation.

Few plans for Half of the airlines surveyed are not currently investing in any
next-generation next-generation aircraft technologies. This suggests that while
technologies some early movers are placing bets on revolutionary propulsion,
much of the industry remains in wait-and-see mode.

Carbon offsets are Despite the growing controversy around offsets, the vast
still popular majority of airlines surveyed (80%) offer voluntary carbon offset
options to customers, with another 5% planning to do so in the
future. Only 10% have no plans to provide passenger offsetting.
Among those that do offer offsets, a separate landing page
is the most common avenue (60%), followed by post-booking
emails (45%) and messages on the airline website (35%).

SAF uptake Perhaps the one result we didn’t need the survey for! As of 2023,
poised to grow most airlines are using little to no sustainable aviation fuel, with
steadily 40% in the 0-0.5% range and 40% in the 0.5-1% range. However,
the outlook for 2024 shows a significant expected jump, with
half of all airlines surveyed planning to use 1-5% SAF in their
operations. This indicates that many carriers are on the cusp of
scaling SAF from experiments to meaningful proportions of their
total fuel mix.

37
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Double down on efficiencies

In the absence of dramatic decarbonisation levers, airlines should carefully monitor and
quantify the impacts of existing efficiency initiatives to identify the highest ROI initiatives.
Sharing best practices across the industry and standardising metrics can help optimise
these efforts. As efficiency gains reach their limits, airlines will need to pivot to more
transformative investments.

Collaborate to grow the SAF pie

The anticipated rapid growth of airline SAF uptake in the next year is an encouraging
trend that will need to accelerate even further for the industry to meet its net zero
goals. But competing for limited SAF supplies is a zero-sum game. Airlines should
champion sector-wide efforts to boost SAF production volumes and infrastructure
through policy advocacy, joint offtake agreements, and value chain partnerships. In
addition, given the widespread belief in synthetic fuels as a panacea, collective efforts
to scale power-to-liquid production and logistics can help actualise this future faster.

Tread carefully around offsets

Carbon offsets have faced growing controversy lately due to concerns about their
legitimacy and effectiveness. Investigations have revealed that many offsets,
such as rainforest offset credits offered by Verra and projects involving efficient
cookstoves or reforestation, often fail to deliver promised emissions reductions or
have exaggerated their impact. As a result, the EU will ban terms like "climate neutral"
that rely on offsetting by 2026, reflecting a regulatory crackdown on misleading
environmental claims. In light of these developments, airlines should reconsider their
reliance on offsets. While high-quality offsets can still play a transitional role, they
should be seen as a last resort rather than a central pillar of airline climate strategies
to avoid reputational and regulatory risks.

Do not wait for the future to arrive

While most airlines are understandably cautious about investing in nascent propulsion
technologies, the decarbonisation imperative will require some bold early moves.
Given the severe investment deficit in climate tech, airlines should consider strategic
partnerships with aerospace companies and fuel suppliers to co-develop and pilot
the most promising next-gen aircraft and secure early-mover advantages as these
technologies mature.

38
PART II - AIRLINE OUTLOOK

Which initiatives have you implemented Which has the most potential as
to enhance your infrastructure and the "fuel" of the future?
operational efficiencies?

Are any of your initiatives focused on


investing in next-generation fleet?

50%
40% 40%

10% 10%

Hybrid-electric All-electric H2-electric Hydrogen None


aircraft aircraft aircraft aircraft

Do you offer voluntary carbon offset options to customers?

5%
USED TO,
NO LONGER
10% 5%
80
DO NOT PLAN PLAN TO
TO OFFER OFFER THEM
%
YES

39
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Budget and future outlook

“It is not the strongest of the species that survive, not the
most intelligent, but the one most responsive to change.”
– Charles Darwin

Let's face it. When it comes to sustainability in the airline industry, the
conversation always circles back to money and the future. Can airlines look
beyond having a lofty vision or a well-crafted strategy and invest in fundamentally
transforming the way we fly?
Our survey suggests that the industry is starting to wake up to the magnitude of
the challenge ahead, but still grappling with how to balance the costs of going
green with the need to stay competitive in a cutthroat market.
But here's the thing: the airlines that will emerge as the true leaders in
sustainability aren't the ones who will throw a few extra bucks at the problem and
hope for the best. They're the ones who will take a hard look at their budgets,
their future plans, and their entire business model, and ask themselves, "How
can we reinvent ourselves in a way that puts sustainability at the core of
everything we do?"

40
PART II - AIRLINE OUTLOOK

Key Findings
High costs and Airlines identify high costs (95%) and technological limitations
technological (90%) as the top challenges impeding their sustainability
barriers dampen efforts. The industry's thin margins make it difficult to absorb
sustainability the premium for SAF and other green technologies. Inadequate
efforts supply and infrastructure for SAF, electric and hydrogen aircraft
compound the problem. Lack of consumer demand (65%),
regulatory hurdles (55%) and profitability concerns (50%) also
loom large, while lack of C-suite support is rarely an issue (5%).

Budgets are steadily Nearly two-thirds of airlines (65%) report a significant increase
increasing in sustainability budgets over the past five years, while 35%
have seen a moderate rise. None reported flat or shrinking
budgets. This upward trajectory suggests airlines are putting
more financial muscle behind their sustainability commitment.
However, the fact that 65% of airlines still allocate less than 1%
of their total annual budget to sustainability initiatives indicates
that investments may not yet match the scale of the challenge.

Investment in 70% of airlines are investing in SAF companies, by far the most
SAF companies popular category. This aligns with the industry consensus that
dominates but SAF is the most promising near-term path to decarbonisation.
diversification is However, some airlines are beginning to diversify into electric
imminent aircraft (15%), hydrogen technology (35%), carbon offsetting
(20%) and carbon removal (5%).

41
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

What airlines need to do


Collaborate for collective benefit

With cost a nearly universal barrier to scaling sustainable technologies, airlines should
work together and with value chain partners to build economies of scale and reduce
prices. Joint offtake agreements, shared infrastructure investments, and industry-wide
consumer education campaigns could help make SAF and other green solutions more
affordable and accessible. Airlines should also explore creative financing models like
green bonds for sustainability investments.

Boost budgets to match ambitions

While the upward trend in sustainability spending is encouraging, airlines may need
to dedicate even more resources to achieve their ambitious climate goals. Rather than
treating sustainability as merely a budget line item, airlines should incorporate their net
zero plans into all capital allocation and strategic decisions.

Diversify sustainability portfolios

Understandably, airlines are betting big on SAF in the near term. However, they should
also cultivate a broader portfolio of sustainability solutions for the long term. Monitoring
and selectively investing in emerging technologies like electric and hydrogen propulsion
can provide strategic hedges and future competitive advantages as well. Ultimately,
airlines should deploy capital across multiple sustainable levers to manage risk and
maximise impact.

Turn challenges into opportunities

Airlines should view sustainability barriers not as threats but as a chance to drive
industry transformation. The current scenario offers extraordinary opportunities for
airline leadership. Airlines that are early adopters and fast scalers of sustainable
technologies can gain a competitive edge with climate-conscious consumers, investors
and corporate customers.

42
PART II - AIRLINE OUTLOOK

What percentage of your Have you seen an increase in the


annual budget is allocated to budget for sustainability over the
sustainability initiatives? past five years?

65% 65%
Significant increase

20%
15% 35%
Moderate increase

Less than 1% 1 - 3% More than 10%

Which of the following areas have you invested in?


80%

70%

H2
60%

40%

35%

20%
20%
15%
CO2
15%

5% 5%
0%
SAF Electric Hydrogen Carbon Carbon Fleet None
Companies aircraft tech Removal Offsetting Renewal
companies

Challenges to overcome

95% High costs


90% Technological
limitations Lack of
65% consumer
demand

55% Regulatory
challenges
50% Not
profitable

35% Communication

Lack of
C-Level
support
5%

43
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

Conclusion

"When it is obvious that the goals cannot be reached, don’t


adjust the goals, adjust the action steps."
– Confucius

Our inaugural Sustainable Aviation Outlook report, based on a survey of 20 leading


airlines, paints a picture of an industry at one of the most pivotal moments in its
history. We are just about getting started on our sustainability journey. Much more
remains to be done to achieve the transformative change required to align with an
industry-wide 2050 net zero target.
The airline industry has a critical role to play in the global fight against climate
change, and the decisions made by airlines in the coming years will have profound
consequences for the planet and for future generations.

44
PART II - AIRLINE OUTLOOK

Here’s where we stand:

Airlines are investing in building sustainability teams, implementing a wide


range of operational efficiency measures, exploring next-generation technologies,
and setting ambitious net-zero targets. However, the success of these efforts
will depend on the ability of airlines to empower their sustainability teams with
the necessary resources, influence, and cross-functional collaboration to drive
meaningful progress.

As airlines continue to navigate the challenges of the post-pandemic recovery, it is


crucial that sustainability should be a top investment priority and not a luxury.
Airlines must be willing to make bold, long-term bets on sustainable aviation fuels,
fleet renewal, and other game-changing innovations, even in the face of short-term
financial pressures.

The path to a sustainable future for aviation will also require an unprecedented
level of industry-wide collaboration and a willingness to embrace disruptive
change. Airlines must work together to drive down the costs of sustainable
technologies, engage governments and stakeholders to create supportive
policies and infrastructure, and build trust with customers and the public through
transparent and credible action.

The climate crisis demands a fundamental transformation of the aviation industry.


While the temptation to wait for a silver bullet may be strong, airlines must resist
the urge to invest only in perfect solutions and instead commit to the hard work
of incremental progress while planning for major changes in the medium and long
term.

The journey ahead will not be easy. But the destination demands and deserves all
the effort we can put in. After all, a thriving, carbon-neutral aviation industry that
connects people and economies while sustaining our beautiful planet – will repay
our sweat and tears handsomely.

45
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

APPENDICES

46
APPENDICES

Partners

Cirium's Emerald Sky platform helps Envest Global is a global sustainability


executives understand the impact of advisory company specialising in the
every flight. The platform represents analysis and benchmarking of the
a ground-breaking integration of data, sustainability credentials of the world’s
analytics, and innovative methodology, leading airlines based on robust,
delivering unparalleled precision in independent performance data.
measuring aircraft and flight CO2
emissions.
Listen In: Cirium’s Jeremy Bowen on
the power of data and sustainability in
aviation

47
SUSTAINABLE AVIATION OUTLOOK REPORT 2024

List of participating airlines


A
Aer Lingus Air France - KLM All Nippon Airways
Air Baltic Air New Zealand Arajet
Air France Alaska Air Avianca

B I K
British Airways Iberia KLM Cityhopper

L S V
Level Saudia Virgin Australia
Lufthansa Group Southwest Vueling

W
Wizz Air

48
SUSTAINABILITY IN THE AIR - THE PODCAST

Listen to more insights on our podcast

Hosted by SimpliFlying CEO and Founder


Shashank Nigam, Sustainability in the Air
is the world’s leading sustainable aviation
podcast.
Over the past year, aviation guests have
included Scott Kirby (United Airlines), Marie
Owens Thomsen (IATA), Jonathon Counsell
(IAG), Amelia DeLuca (Delta Air Lines), Helen
Giles (Southwest Airlines), Adam Goldstein
(Archer), Bonny Simi (Joby) and Nicholas
Flanders (Twelve).

Listen and subscribe to the podcast here:

green.simpliflying.com/podcast

See other episodes

Meanwhile, our Sustainability in the Air website includes weekly articles on sustainable
aviation tech startups; reports on subjects as diverse as SAF and eVTOLs; and regular
newsletters read by thousands of industry professionals to understand the ever-evolving
space of sustainable aviation and the industry’s potential pathways to net zero by 2050.

SUBSCRIBE

49
SUSTAINABLE
SUSTAINABILITY IN THE AVIATION OUTLOOK REPORT 2024
AIR - THE BOOK

MEET THE PIONEERS


OF SUSTAINABLE AVIATION
Climate change concerns are making the aviation industry turn to
sustainable aviation fuel (SAF), electric, and hydrogen-powered
aircraft to cut emissions. However, scaling these technologies requires
significant innovation.
Sustainability in the Air highlights the journeys of entrepreneurs,
executives, and investors who are navigating these challenges and
paving the way for the future of aviation.

Learn more at sustainabilityintheair.com

50

You might also like