American Airlines’ Commitment to a Low-Carbon Future: Ambitious Climate Goals and Collaborative Efforts

Rhea-AI Summary

American Airlines (AAL) has set ambitious climate goals, aiming for net zero greenhouse gas emissions by 2050. The airline's strategy focuses on:

1. Fuel-efficient operations, primarily through more efficient aircraft
2. Sustainable aviation fuel (SAF) adoption
3. Collaboration with partners to advance decarbonization technologies

Key targets include:
- 45% reduction in GHG emissions intensity by 2035 (2019 baseline)
- 10% jet fuel replacement with SAF by 2030
- 30% of available seat miles with latest-generation aircraft by 2025

In 2023, AAL achieved a 3% reduction in GHG emissions intensity since 2019 and used 2.7 million gallons of SAF. The company is investing in next-generation aircraft and partnering with firms like ZeroAvia to develop hydrogen-powered flight technologies.

Positive

• Set externally validated, science-based 2035 greenhouse gas reduction targets
• Achieved 3% reduction in GHG emissions intensity since 2019
• 54% reduction in Scope 2 emissions since 2019
• 9.8% improvement in fuel efficiency compared to 2013, avoiding 22.9 million metric tons of CO2e
• Used 13.5 million fewer gallons of jet fuel for mainline aircraft in 2023 compared to 2019
• Flew 25.7% of available seat miles with latest-generation aircraft in 2023
• Entered agreement to purchase 10 Airbus A321neos from Alaska Airlines
• Took delivery of 17 Boeing 737 MAX and four Boeing 787 Dreamliner aircraft in 2023
• Used nearly 2.7 million gallons of Sustainable Aviation Fuel (SAF) in 2023
• Signed carbon removal purchase agreement with Graphyte

Negative

• SAF usage represents less than 0.1% of total fuel use, far from 10% 2030 goal
• Reliance on future technologies and collaborations for significant emissions reductions
• Uncertainty in the pathway to achieve net zero emissions by 2050

Insights

Sustainability Analyst

American Airlines' climate strategy demonstrates a comprehensive approach to decarbonization, but faces significant challenges. The airline's commitment to 45% reduction in GHG emissions intensity by 2035 and net-zero by 2050 is ambitious, considering the aviation industry's heavy reliance on fossil fuels. Their multi-pronged strategy, including fleet renewal, operational efficiency and sustainable aviation fuel (SAF), shows a realistic understanding of the complexities involved.

However, the $10.6 billion revenue from fuel-efficient aircraft, representing just over 20% of total revenue, indicates a long road ahead. The use of 2.7 million gallons of SAF, less than 0.1% of total fuel use, highlights the immense scale-up required to meet their 10% SAF goal by 2030. While their investments in next-generation technologies are promising, the uncertainty in technological development poses risks to their long-term strategy.

Financial Analyst

American Airlines' climate strategy presents both opportunities and risks for investors. The $10.6 billion revenue from fuel-efficient aircraft demonstrates a positive return on investment in fleet modernization. However, the substantial capital expenditures required for this transition - with 70% of 2023 CAPEX allocated to decarbonization efforts - may pressure short-term financial performance.

The airline's proactive approach to climate risk mitigation could enhance long-term competitiveness, especially if regulatory pressures increase. However, the reliance on emerging technologies and SAF scale-up introduces significant execution risk. Investors should closely monitor the cost trajectory of SAF and the airline's ability to meet its 10% SAF goal by 2030, as this could substantially impact operating expenses. The company's transparency about uncertainties in its decarbonization pathway is commendable and allows for more accurate risk assessment.

Environmental Policy Expert

American Airlines' climate strategy aligns with global decarbonization efforts, but faces significant policy and market challenges. The airline's science-based targets and scenario analysis demonstrate a robust approach to climate risk management. However, the success of their strategy heavily depends on external factors beyond their control, including technological advancements and supportive policy frameworks.

The company's engagement with policymakers on aviation infrastructure and efficiency improvements is crucial. However, more aggressive policy support may be needed to achieve the scale of SAF production required. The airline's investment in next-generation aircraft technologies, like the partnership with Embraer and ZeroAvia, shows foresight but faces uncertain regulatory pathways for certification and deployment. The acknowledgment of uncertainty in their decarbonization pathway reflects a realistic assessment of the challenges ahead and may help in advocating for necessary policy support.

Originally published in American Airlines' 2023 Sustainability Report

NORTHAMPTON, MA / ACCESSWIRE / August 7, 2024 / At American, we believe that being a competitive, resilient airline - and one that will continue to care for people on life's journey for generations to come - requires helping to drive the operational, policy and technological changes needed to advance the transition to a low-carbon aviation future.

American has set what we believe are ambitious climate goals, and in 2022 we became the first airline globally to set externally validated, science-based 2035 greenhouse gas (GHG) reduction targets. Our strategy to reach these targets focuses on running an ever more fuel-efficient operation, primarily by operating more fuel-efficient aircraft that are increasingly powered by low-carbon fuel.

While we are committed to taking steps within our own operations, the reality is that we cannot rely on today's technologies to achieve the progress we need to make in reducing our emissions in the future. Making the transition to low- and no-carbon aviation depends on a range of technologies that are not yet at commercial scale - or haven't yet been invented. That's why a key part of our climate strategy is collaborating with business partners, startups, scientists and innovators who are pioneering these technologies. Those collaborations, in turn, are driving our investments and catalytic commitments to help advance and scale aviation's decarbonization solutions.

Our Climate Strategy

Our aim is to achieve net zero GHG emissions by 2050. To drive progress, we have set an intermediate target to reduce GHG emissions intensity by 45% by 2035, relative to a 2019 baseline. This includes both direct emissions (Scope 1) - primarily from the combustion of jet fuel used in flight - and the indirect emissions (Scope 3) from the production of the jet fuel we use and the consumption of jet fuel used by our contracted regional carriers.

Our strategy is focused on driving progress across several key levers - some of which we have the ability to influence directly, and some of which will require action, collaboration and innovation within our industry, across sectors and by policymakers.

Underpinning our strategy is our analysis of the climate-related risks and opportunities facing our company. We initially conducted the analysis in 2020, and, in early 2023, we further expanded and deepened it by incorporating 1.5°C-aligned scenarios, consistent with the ambition of the Paris Agreement, in our assessment of both physical and transition risks. This includes the International Energy Agency Net Zero Emissions by 2050 Scenario, which we selected because it includes aviation-specific narratives and milestones. For a detailed discussion of our process and findings, see page 61.

Acknowledging Uncertainty on the Path to Net Zero

Since 2020, we have included a graphical representation of our directional pathway to net zero in our annual sustainability report. It is based on American's current estimates about the role of key levers in reducing our GHG emissions between now and 2050.

The pathway includes assumptions about a range of important factors, most of which are outside of American's control. While we expect that certain technologies - such as SAF and new aircraft propulsion - may be able to reduce emissions to a greater extent than others, the future development and availability of these technologies is not something we can predict with precision. Their contribution to our decarbonization will depend on the pace at which new technologies are developed and the willingness of stakeholders to invest in them, as well as the implementation of public policies that will help drive the trajectory toward their adoption.

As a result, there is inherent uncertainty about the emissions reduction contribution of each lever. American's end goal remains unchanged - achieving net zero in 2050 - but in the interest of transparency, we are acknowledging that it is not possible to accurately predict the path through 2050 with specificity.

Our Goals and Progress

Our strategy is focused on driving progress across several key levers. Below are the components of our strategy, goals and progress through 2023.

Overarching strategy
Working across all levers to transition to operating a resilient, competitive and low-carbon airline

GOALS	Reduce GHG emissions intensity by 45% by 2035 (SBTi-validated target) Reduce Scope 2 emissions by 40% by 2035 (SBTi-validated target) Target net zero emissions by 2050
2023 HIGHLIGHTS	3% reduction in GHG emissions intensity since 2019* 54% reduction in Scope 2 emissions since 2019 9.8% improvement in fuel efficiency compared with 2013, avoiding nearly 22.9 million metric tons of CO2 e 25,000 tons of CO2 avoided through use of renewable fuels

STRATEGY LEVER	Flight operations and efficiency Operating our fleet and associated operations as efficiently as possible to reduce fuel use and emissions
GOALS	Achieve absolute reduction of 50 million gallons of jet fuel from fuel-efficiency initiatives by 2025
2023 HIGHLIGHTS	Used 13.5 million fewer gallons of jet fuel for mainline aircraft in our fleet as of 2019 that continued to be flown through 2023 Expanded Smart Gating technology, projected to save 1.4 million gallons of fuel and 13,400 metric tons of CO2 e emissions annually, by reducing fuel use and associated GHG emissions through reduced gate conflicts, taxi times and airport congestion Saved 8 million gallons of fuel by using interactive inflight software

STRATEGY LEVER	Fleet renewal Operating more fuel-efficient aircraft and engines
GOALS	Fly 30% of our available seat miles (ASMs) with latest-generation, more fuel-efficient aircraft in 2025
2023 HIGHLIGHTS	Flew 25.7% of ASMs with latest-generation aircraft; approximately $10.6 billion - or just over 20% of our revenue during the year - stemmed from passengers flying these aircraft Mainline fleet had an average age of 12.9 years - the youngest mainline fleet among U.S. network carriers - as of year-end 2023 Entered into an agreement to purchase 10 Airbus A321neos from Alaska Airlines, and many are already flying within our fleet, bringing us closer to our goal Took delivery of 17 Boeing 737 MAX and four Boeing 787 Dreamliner aircraft in 2023

STRATEGY LEVER	Next-generation aircraft Investing to advance the development of low- and no-carbon aircraft that can be integrated into our fleet
GOALS	Induct zero-emissions, hydrogen-powered aircraft into our fleet by 2032 or earlier
2023 HIGHLIGHTS	Entered into a memorandum of understanding with Embraer to help develop the Energia concept aircraft, which aims to use electric, hydrogen and hybrid propulsion technologies to advance next-generation, zero-emissions aircraft Continued our partnership with ZeroAvia, via strategic investments announced in 2022 and 2024, to help advance hydrogen-powered flight technologies Placed a conditional order for ZeroAvia hydrogen retrofits of 65-seat regional jets in 2024

* See SBTi Aviation Tool carbon intensity on page 74.

STRATEGY LEVER	Sustainable aviation fuel Purchasing and helping scale SAF production
GOALS	Replace 10% of our jet fuel with SAF in 2030
2023 HIGHLIGHTS	Used nearly 2.7 million gallons of SAF on our flights in 2023, representing less than 0.1% of our fuel use Entered into an innovative, firm offtake agreement for Infinium Powerto-Liquids (PtL) eSAF, helping unlock financing for the PtL facility

STRATEGY LEVER	Airspace efficiency and modernization Supporting airspace system improvements that increase efficiency
GOALS	Work with policymakers to secure appropriate support for global aviation infrastructure, technology, staffing and services to improve efficiency
2023 HIGHLIGHTS	Continued trial of Automatic Dependent Surveillance-Broadcast In (ADS-B In) capability on aircraft, which enables pilots to optimize flight paths, thereby reducing emissions and enhancing safety

STRATEGY LEVER	Jet fuel production (upstream) Engaging with our jet fuel suppliers to encourage them to reduce emissions within their operations
GOALS	Target a 40% reduction in average emissions intensity from the production of the jet fuel we purchase by 2035
2023 HIGHLIGHTS	Engaged with key jet fuel providers to understand their climate and sustainability strategies more broadly, and to identify potential opportunities for partnership

STRATEGY LEVER	Carbon market Participating in the voluntary carbon market to neutralize aviation's residual emissions
GOALS	Utilize offsets and removals after exploring in-sector decarbonization tools
2023 HIGHLIGHTS	Signed a carbon removal purchase agreement with Graphyte, becoming the inaugural customer of the carbon removal startup

Aligning Our Capital Investments With Our Net Zero Pathway

A significant portion of American's capital spending - from the billions of dollars we have invested in our fleet to our ongoing fuel-saving initiatives - brings the added benefit of supporting our GHG reduction targets. See page 12 of our 2022 Sustainability Report to learn more.

Approximately 70% of our total capital expenditures in 2023 were allocated to efforts that also provided decarbonization benefits.

Read more

View additional multimedia and more ESG storytelling from American Airlines on 3blmedia.com.

Contact Info:
Spokesperson: American Airlines
Website: https://www.3blmedia.com/profiles/american-airlines
Email: info@3blmedia.com

SOURCE: American Airlines

View the original press release on accesswire.com

FAQ

What are American Airlines' (AAL) main climate goals?

American Airlines (AAL) aims to achieve net zero greenhouse gas emissions by 2050, with an intermediate target of reducing GHG emissions intensity by 45% by 2035, relative to a 2019 baseline.

How much Sustainable Aviation Fuel (SAF) did American Airlines (AAL) use in 2023?

In 2023, American Airlines (AAL) used nearly 2.7 million gallons of Sustainable Aviation Fuel (SAF), representing less than 0.1% of their total fuel use.

What percentage of American Airlines' (AAL) available seat miles were flown with latest-generation aircraft in 2023?

In 2023, American Airlines (AAL) flew 25.7% of its available seat miles with latest-generation, more fuel-efficient aircraft.

How many new aircraft did American Airlines (AAL) add to its fleet in 2023?

In 2023, American Airlines (AAL) took delivery of 17 Boeing 737 MAX and four Boeing 787 Dreamliner aircraft, and entered an agreement to purchase 10 Airbus A321neos from Alaska Airlines.