FedEx expands SAF use to Miami, Chicago in first cargo airline deployment at O’Hare

FedEx has begun using sustainable aviation fuel at Chicago O'Hare and Miami International Airports, marking the shipping company's second and third US deployments of SAF in six months and establishing the carrier as the first all-cargo airline to use the lower-emission fuel at O'Hare.

The deliveries, which started in October, build on FedEx's first major US SAF rollout at Los Angeles International Airport earlier in 2025, the company said Nov. 10.

The move underscores the company's broader push to integrate lower-carbon fuels across its aviation network as it targets sourcing 30% of its fuel from alternative sources by 2030.

"Each executed agreement signals to fuel producers that airlines are willing and eager collaborators to help scale the SAF market," Karen Blanks Ellis, FedEx's chief sustainability officer and vice president of environmental affairs, said. "While supply still lags demand, we're encouraged by early signs of increased global SAF production this year."

At Chicago O'Hare, FedEx will receive around 1 million gallons of neat SAF blended to at least 30%, supplied by Air bp. FedEx said existing fuel infrastructure and supportive state policies made O'Hare a "logical next step" in its alternative fuel strategy.

At Miami International Airport, FedEx began taking delivery of roughly 3 million gallons of blended SAF, also at a minimum 30% blend, supplied by AEG.

"With FedEx flights from Miami heading across Latin America and the Caribbean every day, this milestone reinforces our commitment and demonstrates to our customers that sustainability is not just a corporate goal—it is a regional priority," Luiz R. Vasconcelos, president of FedEx Latin America and the Caribbean, said.

SAF, which can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel, can be used as a "drop-in" replacement requiring no engine or infrastructure modifications.

FedEx said SAF deployment forms part of its wider sustainability plan, which also includes aircraft modernization and fuel-saving initiatives.

The company avoided using 140 million gallons of jet fuel in fiscal 2024 through efficiency improvements, saving about $400 million. It has already met its previous goal of a 30% cut in aircraft emissions intensity from 2005 levels and now targets a 40% reduction by 2034, it said.

US sustainable aviation fuel prices rose in October, reaching their highest levels on Oct. 29 as tight regional supply coincided with elevated Midwest jet fuel prices.

Platts, part of S&P Global Energy, assessed SAF prices delivered into Illinois, with credits detached, at $5.8047/gal on Oct. 29, up 19% from $4.8832/gal on Sept. 30, marking the peak for the month.

Jet Kero FOB Chicago prices also rose, reaching its highest level since March 2024 following a fire at BP's 430,000 b/d Whiting refinery in Indiana and tight inventories.

On the West Coast, SAF (H-S) California prices, with credits detached, were assessed at $4.7397/gal on Oct. 29, up 34.90 cents, or 8%, from $4.3907/gal on Sept. 30, also hitting the highest level for the month, according to Energy data.