Reducing Carbon Emissions
We developed a projected path for how these levers in our strategy can reduce emissions relative to business as usual, combining our business plans and insights from our progress with data-informed assumptions about future technology availability. Our emissions reduction strategy starts with driving efficiency in how we operate aircraft and ground operations. Prioritizing operational efficiency holds significant potential for reducing fuel consumption and emissions.
Our ability to advance on this path continues to rely significantly on the scaling of SAF supply and the development of new technologies. We recognize that these markets and technologies do not exist today at the scale or with the operational and commercial viability needed for the future. That is why we continue to address these issues from all angles: advocating for public policy to mature the SAF market and de-risk private investment, partnering with industry coalitions and engaging our customers to build awareness and support.
We ended 2025 at 1,350 kg CO₂/’000 RTM, a 7.8% improvement from our 2019 baseline, reinforcing our long-term efficiency progress.
2025 Greenhouse Gas Emissions Inventory
SASB: TR-AL-110a.1; IFRS S2: 29(a)
Alaska and Hawaiian Airlines maintain a comprehensive greenhouse gas (GHG) emissions inventory to understand and manage the potential climate impacts of our operations. Our GHG emissions inventory is prepared in alignment with the Greenhouse Gas Protocol and includes emissions associated with our owned and controlled activities, as well as select value‑chain emissions where data is available and relevant. Our aim is to reduce GHG emissions intensity in the short and medium term and achieve net zero emissions by 2040 as technologies become more available. Our greenhouse gas (GHG) emissions inventory includes:
- Scope 1 emissions: Primarily driven by jet fuel combustion from flight operations across our mainline (Alaska and Hawaiian) and regional (Horizon) fleet, as well as fuel use from ground service equipment.
- Scope 2 emissions: Indirect emissions associated with purchased electricity used at our owned and leased facilities.
- Scope 3 emissions: Indirect value‑chain emissions beyond airline operations. Currently include categories 1, 2, 3 and 8, based on data availability and relevance to our business.
- Biogenic emissions: Emissions from the combustion of biogenic fuel components, primarily from purchased SAF, are reported separately from Scope 1.
The operational boundary reflects activities over which we have operational control, and emissions are reported in metric tons of carbon dioxide equivalent (CO₂e). We recognize that measuring emissions across a global airline network involves inherent complexity. To enhance the reliability of our inventory and be as transparent as possible, we regularly review methodologies, refine assumptions and strengthen internal data management processes. These efforts support our ability to track performance over time and inform decision‑making related to efficiency improvements and decarbonization initiatives.
2025 Scope 1, 2 and 3 Emissions
* Scope 2 emissions are market-based
Operational and Fuel Efficiencies
In 2021, we set a goal to become the most fuel‑efficient U.S. airline by 2025, aligned with performance benchmarks published by the International Council on Clean Transportation (ICCT). When the ICCT airline efficiency rankings were discontinued, we developed an internal benchmarking model using publicly available fuel burn and capacity data to continue tracking fuel efficiency across U.S. airlines. Using a 2019 baseline of 1,465 kg CO₂ per 1,000 revenue ton miles (RTM), we reduced our carbon intensity to 1,350 kg CO₂ per 1,000 RTM by 2025 — a 7.8% improvement. Based on analysis of publicly available 2025 data, we continue to be the most fuel‑efficient U.S. premium airline.
We also formally established a fuel efficiency program in 2025, initially focused on mainline Alaska operations. Through a range of operational fuel efficiency initiatives, the program delivered more than 9.3 million gallons in fuel savings, representing a 38% year‑over‑year increase in savings. At an average fuel cost of $2.50 per gallon, this equates to approximately $23 million in cost savings. Hawaiian also established a fuel efficiency program over a decade ago, and we look forward to aligning our programs and incorporating Horizon. We continue to evaluate fuel efficiency levers and prioritize implementation based on fuel and financial savings impact and operational feasibility.
Tip: Hover over each number to learn about our initiatives
Sustainable Aviation Fuel
A key lever in our ambition to achieve net zero carbon emissions by 2040 is the adoption of Sustainable Aviation Fuel (SAF), which could reduce GHG emissions by up to 80% compared to traditional jet fuel. While SAF provides one of the biggest opportunities to make a significant impact on reducing emissions in the near and mid-term, it has not achieved scale and affordability.
Therefore, we are committed to doing our part to grow and mature the market for SAF, including through partnerships and investments, because we know it will take all of us to address this challenge. Our approach to driving SAF forward includes partnering with key producers, especially in our primary geographies, to support their operational growth. In 2025, we purchased nearly 11 million gallons of SAF, a 52% increase from 2024. As of 2025, SAF represents 1% of our fuel usage. We are also advancing the nascent SAF market through offtake agreements, investments, advocacy of supportive public policy and collaboration with business customers and guests to incentivize SAF purchases.
We are proud of the work we are doing to drive progress in these areas:
- As a founding member and board-level partner, we helped bring the Cascadia Sustainable Aviation Accelerator (CSAA) to life in the Pacific Northwest, one of our home markets. A non-profit backed by the Washington State Department of Commerce, CSAA unites industry, government and research partners to scale SAF production across the region. With access to local, low-carbon feedstocks, affordable clean energy, established infrastructure and a skilled workforce, the Pacific Northwest has all the elements necessary to support production of up to one billion gallons of SAF by 2035.
- Hawaiian Airlines is one of the founding members of the Hawaiʻi Renewable Fuels Coalition, which was created in 2023 to collaborate with diverse stakeholders on advocacy for state-level renewable fuels policy. The coalition recognises that scaling the supply of cost-competitive renewable fuels will be critical to achieving Hawaiʻi’s ambitious economy-wide decarbonization goals, and that partnerships, cross-sector collaboration and targeted policy support are needed to accelerate change in the state’s energy landscape. In 2025, we continued our leadership role in the coalition and in developing the SAF market in Hawaiʻi.
- Since launching the opportunity for guests to contribute to SAF in and outside the booking path, over 100,000 of our guests have chosen to take action on their travel-related carbon emissions by purchasing SAF credits while also earning Elite Qualifying Miles (now Atmos™ Rewards Points).
- In August 2025, Hawaiian Airlines announced incorporating SAF made of used cooking oil sourced domestically in Japan on flights between Osaka, Japan and Honolulu, Hawai‘i through partnership with Cosmo Oil Marketing.
oneworld® BEV Fund
In the SAF space, we became a cornerstone investor and helped launch the oneworld® Breakthrough Energy Ventures (BEV) Fund, one of our signature actions in 2025 and a commitment that may anchor our SAF investment strategy for years to come. The fund is a partnership between the oneworld® alliance and Breakthrough Energy Ventures — bringing together airlines, investors and non-industry innovators under a shared, science-based approach— designed to address the limited availability and high cost of SAF today. By focusing on early-stage technologies, the fund bets on solutions with the potential to achieve cost-competitiveness at scale. It represents a powerful example of collective action: the kind of cross-sector collaboration that no single organization could drive alone.
The fund will:
Invest in novel, next-generation Sustainable Aviation Fuel technologies
Support the growth of alternative fuel markets to meet the long-term needs of the global aviation industry
Create economic value for investors and regions around the world
Drive technology innovation
Develop a diverse and resilient SAF supply chain to meet future demand
Advancing SAF Supply in Washington and Hawai‘i
Investing in SAF in our two largest hub markets strengthens local supply chains where we have the greatest operational footprint, supports regional economic development and lays the groundwork for scaling SAF availability over the long term. Currently, we secure SAF supply through offtake agreements with multiple producers with deliveries to multiple airports across the United States. We have continued our partnership with Twelve, a producer of power-to-liquid SAF called E-Jet® SAF that utilizes recaptured CO2 as feedstock. Together with Microsoft, we committed to operating regular domestic flights using E-Jet® SAF from Twelve’s facility at Moses Lake, WA, its first production site in Washington state.
Since 2022, Hawaiian Airlines has partnered with Par Hawaii, the largest producer of energy products in the islands, to advance the supply of SAF in Hawai‘i. In December 2025, we announced our commitment to be the launch customer of Par Hawaii’s SAF, with plans to take delivery of Hawaiʻi’s first locally produced SAF in 2026; we also announced, alongside Par Hawaii, our investment in Pono Energy, Inc., a subsidiary of Pono Pacific, to pioneer the development of locally grown agriculture feedstock for SAF. This initiative will enable SAF production in the state and deliver economic benefits through the creation of a new energy sector and fuel supply chain in Hawaiʻi, while bringing new opportunities for local agriculture.
Fleet Management
We strive to operate our aircraft fleet as efficiently as possible by maximizing the utilization of each airplane. A mix of growth and replacement aircraft for aging Boeing 737s helps keep AAG’s fleet one of the youngest in the industry and the most fuel-efficient among premium U.S. carriers. The 737 MAX delivers 15% to 25% greater efficiency on a per-seat basis and 50% less nitrogen oxide (NOX) emissions compared to the aircraft it replaces. We also operate the Boeing 787 widebody aircraft, which will be operating across Europe and Asia, and are 20% more fuel efficient than prior-generation aircraft of similar size.
Our Fleet*
*Source: 10-K filing; Mainline figure excludes ten A330-300 Freighters operated for Amazon.
Investing in Our Fleet
We are reducing emissions and improving fleet efficiency from our ground service equipment (GSE) by transitioning to more efficient units and electric units where possible. In 2021, we set a goal to reduce our GSE fleet emissions average by 50% per unit, and we delivered a 46.6% reduction, just shy of achieving our target. We achieved this progress by replacing older, less fuel-efficient equipment with electric GSE where infrastructure was available and with newer, more fuel‑efficient models where electrification was not yet feasible. This progress reflects strong collaboration across teams and partners, with our GSE team playing a central role in advancing continuous improvement and delivering tangible emissions reductions.
While working toward our GSE fleet emissions reduction goal, we experienced supply chain disruptions during the COVID-19 pandemic, alongside infrastructure constraints at many airports, including limited charging capacity. Progress was also affected by the current availability of electric ground support equipment (eGSE), as some vehicle types are not yet commercially available in electric form. Additionally, operating conditions in colder climates, such as Alaska, present challenges for scaling eGSE until technology continues to advance.
Looking ahead, we have set a 2030 goal to achieve 60% electrification within our core GSE activities, including bag tractors, belt loaders and pushback tugs across five of our hub locations.
Investing in New Technologies
IFRS S2: 22(a)
We are in an exciting era of transformational advancement in aviation. Propulsion efficiency, aerodynamic improvements, SAF and next-generation airframe designs are all progressing steadily through certification and commercialization pathways. At the same time, AI-driven capabilities — including predictive maintenance, route and network optimization and supply chain digitization — are accelerating operational innovation across the industry.
Achieving net zero aviation will require harnessing breakthrough innovations such as these, and we are committed to driving progress and collaborating to advance the industry. We’ve set a goal to direct more than 50% of Alaska Star Ventures' investments in technology to reducing aviation emissions. We believe these strategic investments will help accelerate progress toward decarbonizing aviation as a whole, supporting our business resilience as well as the broader aviation ecosystem. Through Alaska Star Ventures, our corporate venture capital arm, we invest in transformative technologies that advance our business and the future of aviation. In 2025, Alaska Star Ventures invested in hybrid-electric propulsion developer Ampaire. Hybrid-electric is one of the promising paths to more sustainable travel, and Ampaire’s technology is compelling given that it does not require any significant infrastructure.
Contrail Research and Cross-Industry Partnership
Alaska Airlines is helping the aviation industry better understand and address the climate impact of contrails. We joined and helped fund the Rocky Mountain Institute's Contrails Impact Task Force, a collaboration with industry and academic partners working to expand observational data and validate emerging science to guide future action.
We also partnered with Contrails.org to deliver an educational briefing on contrails for Alaska dispatchers and technical pilots, helping build internal awareness of contrail formation, mitigation concepts and emerging operational considerations. Additionally, we participated in the Cascade Sustainable Aviation Technology Symposium, hosted by Boeing and MIT, which convened industry, government and academic stakeholders to identify key barriers and promising solution pathways to accelerate progress toward net zero aviation.
Looking Ahead
2030 Carbon Emissions Reduction Goals
- Reduce GHG emissions by 10%–14% (Mt CO2/1,000 RTM) inclusive of fuel efficiencies, fleet upgrades and SAF from our 2019 baseline.
- Enable the delivery of blended SAF to Seattle-Tacoma International Airport through a commitment to engage in policy and infrastructure investments.
- Reduce Scope 2 emissions at facilities by 100%.
- Increase electric core GSE use to 60% across SEA/PDX/SFO/LAX/HNL.
- Direct more than 50% of Alaska Star Ventures' investments in technology to reducing aviation emissions.