• FedEx expects to secure more than 20 million gallons of neat sustainable aviation fuel across five U.S. airports through 2027.
• SAF will be delivered at blend ratios of 30% to 50%, supporting FedEx’s target to source 30% of its jet fuel blend from alternative sources by 2030.
• The expansion builds on roughly 5 million gallons of neat SAF secured from 2025, highlighting how policy incentives are shaping aviation fuel procurement.

FedEx is expanding sustainable aviation fuel procurement across its U.S. air network, with new agreements covering five major airports through 2027.

The agreements are projected to secure more than 20 million gallons of neat sustainable aviation fuel. Deliveries will support FedEx operations at Newark Liberty International Airport, Oakland International Airport, Miami International Airport, John F. Kennedy International Airport and Dallas Fort Worth International Airport.

SAF will be supplied at blend ratios ranging from 30% to 50%, depending on the airport. The expansion adds another layer to FedEx’s strategy for reducing emissions from aviation, one of the hardest transport sectors to decarbonize.

FedEx builds SAF procurement toward 2030 target

FedEx is working toward a goal of sourcing 30% of its jet fuel blend from alternative sources by 2030. The latest agreements broaden the use of SAF across its U.S. network while building on procurement that began in 2025.

Starting that year, FedEx secured approximately 5 million gallons of neat SAF. Those agreements resulted in the deployment of 16.5 million gallons of blended SAF across five U.S. airports.

The new procurement phase will substantially increase the volume available to the company. At the five airports covered by the agreements, SAF blends will account for a significant share of FedEx jet fuel use.

“The latest agreements represent an expansion of SAF within the FedEx air network enabled, in part, by state and federal level incentives,” said Greg Paulus, vice president of Enterprise Sourcing.

That policy support remains important to the economics of SAF. Production costs are generally higher than for conventional jet fuel, creating a commercial barrier to wider adoption. Incentives can help narrow that gap while producers work to increase capacity and reduce costs.

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Demand, affordability and supply remain key hurdles

For FedEx, expanding procurement serves both an operational and market-development role. Greater corporate demand can provide SAF producers with stronger visibility into future consumption as they consider investments in new capacity.

“SAF is one of the most impactful decarbonization solutions available to aviation today and an important part of our approach to reducing emissions,” said Karen Blanks Ellis, chief sustainability officer and vice president of Environmental Affairs at FedEx. “For the market to grow, supply needs to be reliable, affordable, and sustainable. Expanding our procurement allows us to employ more SAF in our network while bolstering the demand for greater production and scale.”

Those conditions remain central to the sector’s growth. Airlines and freight operators need dependable fuel supply and airport infrastructure, while producers need sufficient demand to support investment. Policy also plays a role in closing the cost gap with conventional fuel.

FedEx said it will continue evaluating SAF opportunities where supply, infrastructure and economics align with its network requirements.

SAF procurement moves deeper into air freight networks

The agreements offer another example of large aviation users moving beyond small SAF trials toward multi-airport procurement. For corporate sustainability teams, the approach links emissions targets with fuel purchasing and operational planning.

It also puts greater focus on the policies supporting the emerging market. State and federal incentives can influence where SAF becomes commercially viable, which in turn affects procurement decisions and infrastructure investment.

For investors, producers and aviation executives, the next challenge is scale. Demand is emerging, but the market must translate that demand into reliable production at competitive prices.

FedEx’s latest procurement expands SAF use across several of the busiest nodes in its U.S. network. Its progress through 2027 will provide another test of whether policy support, corporate demand and production capacity can develop quickly enough to move SAF further into mainstream aviation operations.