US airlines quietly back away from SAF, citing government uncertainty

The largest US airlines — United, Southwest and American Airlines  — appeared to be quietly backing away from sustainability pledges and support for the use of sustainable aviation fuel (SAF) in their quarterly and annual financial reports filed over the past few weeks, with some citing the new US presidential administration as the reason.

Additionally, all major US airlines reported lower per-gallon fuel costs and average jet fuel prices in 2024 that were close to the reported decrease in average annual fuel costs published by the US Energy Information Administration (EIA). This suggests that annual SAF usage in 2024 did not significantly increase — and may have decreased — from 2023.

The only major US airline to continue to show strong support for the use of SAF in its annual statements was JetBlue Airlines, which filed its report on Friday February 14.

JetBlue asserted in its annual report that the airline had eight active public SAF supply partners “which will support our target to convert 10% of our jet fuel usage to blended SAF by 2030.”

The airline was also involved in the April 2024 purchase of SAF certificates through the Sustainable Aviation Buyers Alliance. SAF purchased by several corporations through that program will be used in part on JetBlue flights.

Delta reported that it had quadrupled its SAF usage in 2024 from the previous year to 14 million gallons, out of a reported 4.1 billion gallons of overall jet fuel used. This amounts to 0.3% of the airline’s jet fuel consumption.

The company also helped found the Minnesota SAF Hub, which brought about the first SAF blending facility in Minnesota, outside Minneapolis-St. Paul.

Delta said in its annual report that it still holds contract agreements to buy SAF “subject to certain conditions,” but it did not elaborate on those conditions or its goals for 2025.

“Prohibitively expensive without govt support”
United Airlines, previously one of the most active investors in SAF, reduced its mention of SAF in quarterly earnings to a single sentence describing the airline’s 33% ownership in its United Airlines Ventures Sustainable Flight Fund. The fund has not announced any new investments in SAF since May.

Southwest Airlines and American Airlines both published long statements about SAF in their annual reports, stating that SAF production is currently inadequate for commercial use and that prices are not competitive with jet fuel.

Southwest was the most outspoken about the current state of SAF in the US, saying that its use will be “prohibitively expensive without appropriate government support, policies and incentives in place (including tax credits).”

Southwest further stated in its annual report that recently issued executive orders by President Donald Trump pausing disbursements under the Inflation Reduction Act had cast uncertainty on the future investment and use of SAF in the US.

Among the most chilling risks Southwest Airlines outlined in its annual report is that the presidential administration could repeal existing SAF incentives, “including tax credits and federal loans and grants,” while the airline still had ongoing and binding commitments to purchase SAF.

JetBlue echoed the sentiment.

“We believe tax credits… are an important step in helping the US airline industry reach its goal of achieving net-zero carbon emissions by 2050, as well as our own goal of net-zero emissions by 2040. Given the new administration in 2025, we expect some uncertainty around the specifics of these tax credits looking forward,” JetBlue said.

Meanwhile, Delta said it continues to support the development of SAF production in the US, but it added that SAF is not being produced at scale and “remains significantly more expensive than conventional jet fuel.”

Lower fuel costs
US airlines reported sharply lower fuel costs in 2024 compared with the year before, just above the 2024 annual average cost of $2.34 per gallon reported by the EIA. The EIA’s reported 2024 annual average jet fuel cost was a 15% decrease over the year before.

JetBlue, the airline that has remained the most committed to SAF, reported the highest average jet fuel costs among major airlines in 2024, at $2.75 per gallon, compared with $3.13 per gallon in 2023. This was also the largest year-on-year drop in jet fuel expense, at just below 14%.

United Airlines showed the next largest drop in fuel costs, a 13% reduction to an average of $2.56 per gallon in 2024, compared with $2.95 per gallon in 2023.

Southwest, American and Delta all reported annual jet fuel cost drops of more than 8%.

Southwest Airlines said that its average jet fuel prices fell to $2.64 per gallon from $2.89 per gallon the year before.

American Airlines’ 2024 jet fuel prices fell to $2.68 per gallon from $2.93 per gallon in 2023.

Delta reported an average jet fuel cost of $2.57 per gallon, down from $2.82 per gallon the year before.