At the IATA World Sustainability Symposium in Hong Kong, Airbus and Cathay Group unveiled a new co-investment partnership worth up to $70 million to accelerate the commercial development of sustainable aviation fuel (SAF) — a critical step toward decarbonizing air travel.

Scaling the Future of Aviation Fuel

The partnership aims to identify and fund SAF projects across Asia and other regions that demonstrate strong technological readiness, scalability, and long-term commercial potential. The goal: to expand global SAF capacity and drive down costs by supporting viable, high-impact producers. Alex McGowan, Chief Operations & Service Delivery Officer at Cathay, described SAF as “the most important lever” in the airline’s decarbonization strategy:

“This partnership with Airbus underscores our shared commitment to building a stronger, more scalable SAF industry capable of transforming aviation’s climate trajectory.”

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Why SAF Matters?

Fuel remains aviation’s single largest source of carbon emissions, responsible for roughly 2% of global CO₂ output. SAF derived from renewable sources such as waste oils, used cooking fats, or agricultural residues — can cut lifecycle greenhouse gas emissions by up to 80% compared to traditional jet fuel. Despite its promise, SAF currently makes up less than 0.2% of global aviation fuel use, hindered by limited supply and costs three to five times higher than fossil-based fuel. Airbus and Cathay’s joint investment is designed to bridge this gap, providing early-stage capital to projects that can achieve scale.

Catalyzing Production Across Asia

Anand Stanley, President of Asia Pacific at Airbus, said the initiative reflects both companies’ commitment to accelerating climate progress through collaboration:

“The production and distribution of affordable SAF at scale requires an unprecedented cross-sector approach. This partnership with Cathay demonstrates how we can catalyze SAF production in the most suitable regions to serve our global customers.”

Asia, with its rich feedstock potential, expanding manufacturing base, and fast-growing air travel demand, is seen as a key frontier for scaling SAF production. Airbus and Cathay plan to engage policymakers, producers, and investors to advance both supply- and demand-side incentives that make SAF economically viable.

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Building an Integrated SAF Ecosystem

The partnership marks one of the first major SAF collaborations between an aircraft manufacturer and an airline headquartered in Asia. Both companies view it as part of a broader ecosystem approach, one that unites the aviation, energy, and finance sectors to accelerate fuel innovation. Airbus has already taken a leadership role in the field, joining the Sustainable Aviation Fuel Financing Alliance (SAFFA) last year as an anchor investor to support the development of next-generation fuel facilities. For Cathay, the deal builds on its long-term sustainability roadmap, which includes a target to achieve net-zero emissions by 2050 and a commitment to using 10% SAF by 2030.

Toward a Cleaner Flight Path

The Airbus–Cathay partnership represents a new model for aviation collaboration, one focused not just on aircraft efficiency, but on transforming the very fuel that powers flight.

As McGowan put it, the goal is clear: “To make sustainable aviation fuel not the exception, but the standard.”

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