DHL and IAG Cargo expand SAF partnership with new 5-year deal

DHL Group has expanded its sustainable aviation fuel (SAF) partnership with IAG Cargo through a new five-year agreement.

The deal, combined with a 2025 renewal, will enable the use of around 240 million liters of SAF at London Heathrow Airport. It will support lower-emission air freight on British Airways flights carrying DHL Express cargo.

Emissions reduction and SAF volumes

Under the agreement, DHL Express will benefit from emissions reductions linked to about 40 million liters of SAF per year. Together with the earlier contract, this is expected to cut lifecycle greenhouse gas emissions by around 640,000 tonnes of CO2e.

The SAF used is certified and produced from sources such as used cooking oil. It can reduce lifecycle emissions by about 90% compared to conventional jet fuel.

Wider group collaboration

The partnership also includes a framework agreement between DHL Global Forwarding and IAG Cargo. This supports a broader strategy to secure reliable access to sustainable fuels.

With this expanded approach, total emissions reductions across the DHL Group could exceed 1 million tonnes of CO2e. The agreement strengthens DHL’s ability to meet growing demand for low-emission logistics solutions.

Supporting long-term sustainability goals

Both companies said the partnership highlights the importance of collaboration in scaling SAF use. Stable fuel access is becoming critical as customers seek long-term solutions to reduce transport emissions.

The agreement supports DHL’s target to reach 30% SAF use in air transport by 2030. It also reinforces its strategy to provide consistent, lower-emission logistics services across its divisions.

SAF remains more expensive than traditional jet fuel and limited in supply. However, long-term agreements like this aim to accelerate adoption and support the transition to more sustainable aviation.

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