American Airlines and Google strike record 35M-gallon SAF deal

Yesterday's french fry grease will help power tomorrow's flights after American Airlines and Google signed the largest publicly disclosed sustainable aviation fuel certificate agreement between an airline and a single corporate customer.

American Airlines and Google struck the largest publicly disclosed sustainable aviation fuel certificate agreement between an airline and a single corporate customer, supporting 35 million gallons of SAF over three years. The fuel, derived primarily from waste feedstocks such as used cooking oil, is expected to cut lifecycle greenhouse-gas emissions by nearly 300,000 metric tons of carbon dioxide equivalent.

"This agreement is a critical step forward in reducing emissions from our operations," American's Chief Sustainability Officer Jill Blickstein said. "By working with leaders like Google who share our commitment to innovation, we're helping to grow demand for SAF and support the development of a stronger, more resilient market."

The fuel will be supplied by Valero Marketing and Supply Company through Chicago O'Hare International Airport. Illinois Governor JB Pritzker cited the state's SAF tax credit as a factor in the deal's structure, saying the agreement "demonstrates how our nation-leading SAF tax credit can bring industry leaders together." Google will use Sustainable Aviation Fuel Certificates to claim the emissions benefit, supporting its goal of addressing emissions from employee business travel.

The agreement comes as global SAF production remains stuck at 0.8% of airline fuel use, according to IATA, which estimates the available supply will cost carriers $4.3 billion this year. Corporate purchase agreements like this one create predictable demand that producers need to justify capacity expansion — a dynamic that could determine whether airlines meet their net-zero-by-2050 targets.

From Fryers to Fuel

Much of the 35 million gallons will come from waste fats, oils and greases — the same materials used in commercial frying. Refined into jet fuel, these waste streams can reduce lifecycle emissions by 80% compared with conventional fossil-derived jet fuel, according to American Airlines. Materials that once ended up in landfills or wastewater systems are converted into fuel for commercial aircraft.

The deal builds on an ongoing collaboration between American and Google to reduce aviation emissions. The two companies previously applied artificial intelligence trained on satellite imagery, weather patterns and flight paths to generate forecast maps of atmospheric regions where contrails would likely form. During a trial of 112 American flights that followed contrail-avoidance flight paths, the airline reduced contrail formation by 62%, with up to 69% reduction in warming impact, and "no statistically significant difference" in fuel consumption, according to the companies.

Why Corporate Buyers Matter

Google's purchase of SAF certificates sends a demand signal to producers at a time when the industry is struggling to scale. IATA Director General Willie Walsh called 2026 "another disappointing year for SAF production," noting that five years after the industry committed to net zero by 2050, SAF accounts for less than 1% of fuel use. "The path to meeting 65% of our needs in 2050 is growing more difficult with each year of ineffectively sequenced government policies and oil companies' manifest lack of interest," Walsh said.

American Airlines has set a target of using SAF for 10% of its fuel by 2030. The carrier's stock rose 3.6% to $14.09 on the day of the announcement, with trading volume of 149.7 million shares — 127% above its three-month average. Peers also gained: Delta Air Lines rose 3.78% to $81.17, and United Airlines climbed 4.09% to $109.63.

Google has also supported the United Airlines Ventures Sustainable Flight Fund and signed a long-term SAF agreement with American Express and Shell through the Avelia registry. The company's Chief Sustainability Officer Kate Brandt said the long-term commitment "sends a vital demand signal to catalyze investment and bring more SAF to market."

For investors, the deal positions American Airlines as a leader in corporate SAF procurement, though the fuel still represents a fraction of its total consumption. The carrier's ability to secure long-term supply through certificate agreements — without taking physical delivery of the fuel at every hub — could lower its compliance costs as emissions regulations tighten. Airlines that fail to secure similar agreements may face higher carbon costs or reputational disadvantages with corporate clients demanding lower-emission travel options.

This article is for informational purposes only and does not constitute investment advice.