DHL, IAG Cargo expand SAF deal to cut air freight emissions

DHL Group has expanded its sustainable aviation fuel collaboration with IAG Cargo through a new five-year agreement that will run until 2030. The deal builds on a previous 2025 renewal and is expected to enable the uplift of about 240 million litres of sustainable aviation fuel at London Heathrow Airport, targeting a reduction in lifecycle greenhouse gas emissions from DHL Express cargo transported on British Airways flights.

Under the agreement, DHL Express will receive Scope 3 emissions reductions from around 40 million litres of neat SAF each year. Combined with the earlier renewal, this is expected to deliver lifecycle emissions reductions of about 640,000 tonnes of CO2e. The agreement covers a large share of the fuel currently linked to DHL Express cargo movements within IAG Cargo’s network. The SAF used is certified by International Sustainability & Carbon Certification and is produced from sources including used cooking oil, delivering lifecycle emissions reductions of about 90 percent compared to fossil jet fuel.

The collaboration is supported by a framework agreement between DHL Global Forwarding and IAG Cargo. This expands the group’s approach across divisions and is expected to increase total emissions reductions to more than 1 million tonnes of CO2e on a lifecycle basis. The structure is intended to strengthen access to sustainable fuels while supporting demand for emissions reduction services in logistics.

The agreement reflects a joint focus on reducing aviation emissions through long-term fuel supply arrangements. It also addresses the need for stable access to SAF as customers seek options to lower transport-related emissions. The partnership supports DHL’s broader strategy to integrate sustainability across its logistics services and maintain consistency in operations across DHL Express and DHL Global Forwarding.

"This agreement shows what is possible when two committed SAF users in the industry pool their efforts," said Travis Cobb, EVP Global Network Operations & Aviation at DHL Express. "It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute towards concrete lifecycle greenhouse gas emissions reductions."

Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said: "DHL and IAG Cargo have a longstanding relationship, and it's great to see our partnership continue to grow as we work together to deliver more sustainable air freight solutions while we keep global trade moving. Partnerships like these will be critical to scaling the use of sustainable aviation fuel."

The agreements support DHL’s target of increasing the share of sustainable aviation fuel in air transport to 30 percent by 2030. The initiative is part of its wider sustainability programme aimed at reducing emissions across logistics operations.

Sustainable aviation fuel is defined under the ReFuelEU Aviation Regulation as fuels derived from synthetic processes, bio-based sources or recycled carbon. While SAF can reduce lifecycle emissions compared to conventional jet fuel, challenges remain in scaling production and availability. Current costs remain higher than fossil jet fuel, and adoption across the aviation sector is still limited.