FEDEX CORP · News & developments
FedEx Secures 20 Million Gallons of Neat Sustainable Aviation Fuel Through 2027
FedEx entered into procurement agreements projected to secure over 20 million gallons of neat sustainable aviation fuel across five U.S. airports through calendar year 2027. The fuel will be delivered at blend ratios between 30% and 50% at facilities in Newark, Oakland, Miami, New York (JFK), and Dallas Fort Worth, expanding on an earlier initiative that secured roughly 5 million neat gallons starting in 2025.
Why this matters
Aviation fuel is the primary source of operational carbon emissions for express parcel networks, but alternative fuels consistently command a price premium over conventional kerosene. FedEx is leaning on government incentives to offset that cost spread while stepping toward its corporate target of sourcing 30% of its jet fuel from alternative blends by 2030. Scaling procurement to more than 20 million neat gallons tests whether the carrier can absorb or pass through green fuel premiums without eroding air segment margins before supply volumes reach parity.