Air Canada and Airbus Launch Joint Initiative to Scale Domestic Canadian SAF and Help Reduce the Life-Cycle Emissions of Corporate Travel

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July 22, 2026

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(Airbus) Air Canada, the country’s largest airline and flag carrier, and Airbus, a global leader in aerospace manufacturing with the largest commercial aircraft industrial footprint in Canada, are uniting their shared commitment to aviation decarbonisation. To lead the way in advancing these goals, the two aviation pioneers are proud to announce their intent to establish a jointly funded Sustainability Co-Investment Platform. This agreement states a shared objective to invest up to approximately CAD 13.7 million (US$10 million), through the platform to support a commercial-scale Sustainable Aviation Fuel (SAF) industry in Canada. Both companies are confident that, with a supportive public policy framework in place, this investment can serve as a catalyst for the broader Canadian SAF ecosystem.

Key focus areas include accelerating a jointly agreed Canadian SAF project toward a Final Investment Decision (FID). While Air Canada and Airbus intend to drive this investment, both companies look forward to continuing their constructive collaboration with government partners to establish the right structural frameworks to support SAF production to emerge at scale in Canada. Their ongoing joint advocacy alongside the Canadian Council for Sustainable Aviation Fuels (C-SAF) reflects a shared commitment to working with federal and provincial governments. By aligning industry initiatives with supportive public policy mechanisms, they can successfully champion domestic SAF production and price competitiveness, with the objective to make renewable fuels available for the Canadian aerospace industry and to preserve affordability of air travel.

“Air Canada is proud to help advance aviation’s energy transition in Canada. Through this joint initiative with Airbus, we are taking meaningful steps toward supporting domestic SAF production, helping corporate customers address the emissions associated with business travel, and contributing to a lower-carbon path for the industry. With continued industry collaboration and a supportive policy environment, we are confident this momentum can accelerate” said Valerie Durand, Vice President, Airport Affairs, Corporate Real Estate and Sustainability at Air Canada.

“I want to thank Air Canada for this very important joint sustainability initiative. Decarbonising aviation will require deep industry collaboration and decades of investment in new sources of renewable energy. By launching this co-investment platform and making a long-term commitment to Air Canada’s Leave Less Travel Programme, we will help to stimulate the production of, and demand for, SAF in Canada. The country has a vast feedstock potential. When combined with a supportive policy framework, it can contribute to the sector’s decarbonisation ambitions and create significant economic growth and job creation.” said Julie Kitcher, Airbus Chief Sustainability Officer and Communications.

Climate Solution for Corporate Travel

Complementing this foundational investment, the initiative introduces a vehicle for corporate partners to stimulate domestic SAF demand through Air Canada’s Leave Less Travel Program.

Demonstrating its commitment, Airbus has signed a long-term, 5-year Leave Less Travel Program Agreement. As part of this parallel corporate travel partnership, which distributes verified SAF environmental attributes to participants, Airbus will purchase SAF environmental attributes associated with over 60,000 litres of SAF for its first allocation. Through this programme, Air Canada will track Airbus’ greenhouse gas (GHG) emissions associated with their corporate travel and remove verified SAF environmental attributes on the company's behalf. Although in-sector emissions reductions are not a substitute for direct emissions reductions at the source, this corporate partnership is a key tool in supporting the scaling up of SAF and will allow Airbus to lower life cycle emissions associated with their employees' business travel.

The use of renewable fuels, such as SAF, complements Air Canada’s extensive fleet modernization strategy, featuring more fuel-efficient aircraft like the long-range narrow-body Airbus A321XLR and the Canada-built Airbus A220. Air Canada and Airbus fully support the aviation aspirational climate ambition set by IATA, ATAG and ICAO to reach ‘net-zero carbon emissions by 2050’, with SAF as a critical component to such pathway.

Multi-Billion Dollar Economic Potential

Beyond the reduction of life cycle emissions, developing a robust domestic SAF ecosystem could trigger a massive ripple effect across the Canadian economy. The strategic platform arrives alongside a new macroeconomic study by Airbus and ICF highlighting Canada's significant potential to lead in aircraft biofuels production.

The study reveals that scaling domestic SAF to meet 40% of Canada's aviation fuel demand by 2040 could add $32 billion to the national GDP and create 140,000 jobs across agricultural, forestry, and urban regions. By establishing a solid platform for corporate investment and support, the Air Canada and Airbus partnership serves as an immediate catalyst to support these multi-billion-dollar economic returns while advancing the development of a domestic SAF ecosystem. Consult the full report on our website.

Sustainable Aviation Fuels (SAF) are industry terms used to reference a family of alternative synthetic aviation fuels. It is a type of non-conventional jet fuel made from resources that can be regenerated, also known as renewable feedstocks. It is chemically similar to conventional aviation fuel but comes from non-fossil sources, making it a lower-carbon alternative over the complete fuel life cycle. To learn more about SAF, visit the Air Canada SAF page or Airbus commitment to sustainable aviation fuel. READ MORE

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Airbus unveils study on the potential of sustainable aviation fuel to support economic growth and accelerate Canada’s climate transition (Airbus)

Excerpt from Airbus: Sustainable aviation fuel (SAF)* could become a major driver of Canada’s industrial and economic growth, while contributing to the global aerospace industry’s aspirational goal to achieve ‘net-zero carbon emissions by 2050’, as set out by ATAG, IATA, and ICAO, according to a macroeconomic study conducted by Airbus and ICF, unveiled at the Farnborough International Airshow. The study outlines the requirements for SAF to meet 40% of Canada’s aviation fuel demand by 2040, quantifying both the policy support required and the resulting economic opportunities for Canada.

Between 2026 and 2040, the development of a Canadian SAF value chain could generate an estimated $32 billion contribution to the country’s GDP. This growth would be accompanied by the creation of 140,000 jobs between 2026 and 2040 across the value chain, representing nearly one quarter of the current direct workforce in the oil and gas sector. Moreover, it would generate nearly $890 million per year in net disposable income for these Canadian households. These benefits would be felt across the country, from agricultural and forestry regions to major urban centres, contributing to economic diversification and the vitality of local communities.

The lifecycle carbon emissions reductions** enabled by SAF adoption could generate an additional estimated societal value of $19 billion through avoided carbon costs, based on the Government of Canada’s methodology. The Social Cost of Carbon (SCC) has been adopted by Environment and Climate Change Canada (ECCC) to measure the additional economic impacts*** of an incremental increase in carbon emissions.

In a context where a significant share of fuel consumed in Canada is imported, developing a domestic SAF value chain is also a matter of energy sovereignty and economic resilience. Domestic production would help reduce reliance on foreign markets and mitigate exposure to geopolitical fluctuations.

Without an increase in domestic capacity, Canada’s reliance on biofuel imports could exceed 65% by 2030 to meet projected demand of 8.5 billion litres. This broader vulnerability would heighten energy security risks for the sector, which already relies on foreign suppliers for approximately 35% of its conventional aviation fuel.

This opportunity comes at a time when the international landscape is evolving rapidly. As incentive policies, particularly in the United States, are already accelerating investment and resource mobilization, Canada also has significant assets that could position it among the leaders in this industry, including abundant natural resources, industrial expertise and recognized leadership in the aerospace sector.

Airbus reaffirms its commitment to accelerating the development of a viable, accessible and affordable SAF market to help reduce the aviation sector’s reliance on fossil fuels. The company is positioning itself as a catalyst within the ecosystem by fostering industrial partnerships, supporting SAF deployment in its own operations and helping mobilize stakeholders across the value chain.

Airbus looks forward to continuing its constructive collaboration with government partners, alongside the Canadian Council for Sustainable Aviation Fuels (C-SAF). Predictable and complementary incentives will be critical to attracting investment and enabling the development of a competitive and viable SAF value chain over the long term. By aligning these industry initiatives with supportive public policy, Airbus aims to contribute domestic SAF production, ensure the availability of renewable fuels for the Canadian aerospace industry, and preserve the affordability of air travel.

Consult the full report on our website.

@Airbus #SAF #Canada #FIA2026

*Sustainable aviation fuel (SAF) is a synthetic fuel. In order to be considered sustainable, it must be made from renewable sources or feedstocks, which could include used cooking oils, fats, plant oils, or municipal, agricultural and forestry waste. It must also meet a set of stringent sustainability requirements (covering the full chain of custody) including regulations set by ICAO’s CORSIA scheme or the EU Renewable Energy Directive (RED). These requirements include food security, water management and human rights considerations. For example, SAF certification bodies independently verify that feedstocks for SAF do not divert resources needed for food production. For more information visit our website.

**While SAF and conventional kerosene emit the same amount of CO2 during flight, SAF can reduce lifecycle CO2 emissions by up to 80% compared to conventional jet fuel depending on the pathway used.

*** Impacts include, but are not limited to, changes in economic productivity, increased property damage from extreme weather events like floods, hurricanes, and forest fires, reduced ecosystem services and impacts on human health. READ MORE