JetBlue (JBLU) Partners With SG Preston to Boost SAF Usage
Through an offtake agreement with SG Preston, JetBlue (JBLU) moves closer to its target of converting 10% of total fuel usage to SAF on a blended basi...
JetBlue Airways Corporation JBLU is accelerating its transition to sustainable aviation fuel (“SAF”) through an offtake agreement with bioenergy developer SG Preston for a period of 10 years. The airline expects to invest more than $1 billion in purchasing SAF over the term of this agreement. The move follows President Joe Biden’s agreement with U.S. airlines earlier this month, to reduce aircraft greenhouse-gas emissions 20% by the decade’s end. The Biden administration has also set up a goal to replace kerosene-based jet fuel with “sustainable” fuel by 2050. Airlines have long been under pressure to reduce carbon emissions.
Under its agreement with SG Preston, JetBlue hopes to reach nearly 8% SAF usage by the end of 2023, when delivery of SAF is expected to begin. This significantly advances the carrier’s target to convert 10% of its total fuel usage to SAF on a blended basis by 2030. The Long Island City, NY-based carrier will also convert 30% of its fuel buy to SAF from traditional Jet-A fuel across John F. Kennedy International Airport (JFK), LaGuardia Airport (LGA) and Newark Liberty International Airport (EWR).
SG Preston will deliver at least 670 million gallons of blended SAF to JetBlue for its flight operations at JFK, LGA and EWR, starting in 2023, through a 10-year period. This is expected to reduce the airline’s approximately 1.5-million metric tons of carbon dioxide emissions.
JetBlue Airways Corporation Price
Zacks Rank & Key Picks
JetBlue carries a Zacks Rank #4 (Sell).
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