(CATHAY PACIFIC) Cathay Pacific and DHL Express have launched a new regional push to use sustainable aviation fuel in Asia, committing 2,400 metric tonnes for Air Hong Kong cargo flights from Seoul Incheon, Tokyo Narita, and Singapore Changi. Announced on August 13, 2025, the partners describe the agreement as the biggest step so far for SAF use in Asian air cargo. They expect the move to cut 7,190 metric tons of lifecycle greenhouse gas emissions through 2025—roughly equal to more than 100 Airbus A330 cargo flights between Hong Kong and Singapore. This is the first time Air Hong Kong will uplift SAF on its operations.
Cathay Pacific presented the partnership as part of a wider push to cut aviation emissions across its network. “This partnership marks the first SAF uplift on Air Hong Kong flights, a key milestone for Cathay as we continue to expand the SAF usage across our global network,” said Tom Owen, Director Cargo at Cathay. “SAF remains a core pillar of our strategy to address our carbon emissions, and collaboration is essential to scaling its use.”
DHL Express, which relies heavily on air cargo to meet time‑definite delivery goals, said the tie‑up builds demand for cleaner fuel in the region. “SAF is the only practical short- to medium-term alternative and the company is making active investments in its use,” said Peter Bardens, Senior Vice President for Network Operations and Aviation – Asia Pacific. “Our decision to expand our SAF usage in Asia with Cathay is another important step that we have taken to drive momentum in SAF production and demand.”
Regional rollout across three Asian hubs
Under the deal, Air Hong Kong will uplift SAF on DHL‑linked cargo flights departing from Seoul Incheon, Tokyo Narita, and Singapore Changi. Cathay Pacific has lined up regional supply to support the rollout, including:
- A supply agreement with Sinopec to bring SAF to Hong Kong — marked as the first such export from mainland China.
- A supply deal with SK Energy in South Korea covering 2025–2027.
- Support for the Hong Kong Sustainable Aviation Fuel Coalition (HKSAFC) to advance policy and local uptake.
DHL will join Cathay’s Corporate SAF Programme, which allows businesses to pay for SAF use and claim related emissions reductions for their shipments and travel. In 2024 the programme enabled more than 6,000 tonnes of SAF with 16 corporate partners, including HSBC, AIA, and Standard Chartered.
Cathay’s near‑term targets include:
– 6% SAF use by the end of 2025
– 10% of total fuel consumption from SAF by 2030
DHL has stated a 30% SAF use by 2030 goal.
Key figures from the announcement
| Item | Figure |
|---|---|
| SAF volume (2025) | 2,400 metric tonnes |
| Emissions reduction (lifecycle) | 7,190 metric tons |
| Cost gap | SAF is about three times more expensive than conventional jet fuel |
| Targets | Cathay: 6% by 2025, 10% by 2030; DHL: 30% by 2030 |
The partners say the programme shows how cargo operators can cut emissions now while longer‑term technologies develop. The fuel will be used on flights that support express shipments across Asia’s main trade lanes, where time and reliability are key for customers.
Cost, supply, and industry outlook
Industry groups view SAF as the best near‑term tool for lowering flight emissions. The International Air Transport Association (IATA) and other bodies note that SAF can reduce CO2 by up to 80% over its lifecycle compared with fossil jet fuel, depending on production pathway. However, SAF still comprises less than 1% of global jet fuel use, constrained by high prices and limited supply.
The companies acknowledged the three‑times price gap but argued that demand signals from large buyers will help refineries scale up.
According to analysis by VisaVerge.com, the Cathay Pacific–DHL tie‑up is the most advanced SAF initiative in Asian air cargo to date, aligning with the industry push to reach 10% SAF usage by 2030 and net‑zero by 2050. The partners also linked the agreement to wider sustainability efforts: DHL said it is investing in carbon‑neutral buildings and alternative fuels as part of its Strategy 2030 “green logistics of choice” pillar.
For governments, the rollout underscores the role of policy in building a steady SAF market. Singapore’s aviation regulator has published guidance and programmes to help advance SAF adoption at Changi and beyond, offering a model for regional coordination. Official information is available from the Civil Aviation Authority of Singapore at: https://www.caas.gov.sg/sustainability/saf.
Such government action, combined with long‑term offtake deals and corporate programmes, is seen by industry players as the best way to bring down costs and grow supply in Asia.
How the partnership will work (step‑by‑step)
- SAF procurement: sourcing from regional suppliers, including Sinopec and SK Energy.
- Fuel uplift: delivery and blending at Seoul Incheon, Tokyo Narita, and Singapore Changi for Air Hong Kong flights linked to DHL.
- Emission tracking: calculating lifecycle reductions and reporting progress against 2025 and 2030 targets.
- Corporate programme growth: inviting more partners to boost demand and support new production capacity.
Why the cargo sector matters
Cargo operations can play a strategic role in early SAF market development because they:
- Operate high‑frequency routes with predictable schedules and volumes.
- Make it easier to plan fuel deliveries and test procedures before wider rollouts.
- Provide logistics companies with a way to meet customer requests for lower‑carbon shipping and to address Scope 3 emissions in supply chains.
Multiple groups stand to benefit from a stronger SAF market:
– Airlines: a practical tool to meet net‑zero goals and future rules.
– Logistics providers: a clear offering for clients with climate targets.
– Fuel suppliers: firm demand to justify new SAF capacity in Asia.
– Corporate customers: a pathway to cut emissions from travel and freight.
Recent milestones and expected impact
Cathay Pacific’s Corporate SAF Programme began in 2022 and has grown quickly through 2024–2025. Recent milestones include:
– The first export of SAF from Sinopec to Hong Kong.
– New supply deals with SK Energy.
– The new arrangement with DHL, designed to spur further adoption, supply‑chain development, and policy support across the region in 2025 and beyond.
“SAF is the only practical short- to medium‑term alternative” — Peter Bardens (DHL)
“Collaboration is essential” — Tom Owen (Cathay)
Both executives emphasized that demand commitments, supplier agreements, and clear policy signals must work together to grow supply and close the price gap.
Asia’s hub airports—Seoul Incheon, Tokyo Narita, and Singapore Changi—now sit at the center of this effort. By placing regular SAF uplifts on Air Hong Kong’s cargo flights, the partners aim to demonstrate how a focused, route‑based plan can deliver measurable emissions cuts in a short time frame. If fuel deliveries remain steady and tracking methods hold up across busy schedules, the partners say the template can be widened to more routes and participants.
The agreement fits within a broader wave of airline‑logistics cooperation. While alternative aircraft technologies remain years away for long‑haul operations, SAF can be used in today’s fleets and fuel systems, enabling airlines and shippers to act now. With costs still high, companies are turning to:
– Joint offtake deals
– Corporate programmes
– Coalitions such as the HKSAFC
Taken together, these measures aim to help Asia move toward the 2030 SAF goals while keeping vital trade lanes running.
This Article in a Nutshell
Cathay Pacific and DHL commit 2,400 tonnes of sustainable aviation fuel for Air Hong Kong flights from Seoul, Tokyo and Singapore, reducing 7,190 tonnes CO2 lifecycle emissions through 2025, accelerating SAF demand via Sinopec and SK Energy supplies, and advancing corporate programmes to scale SAF across Asia’s cargo network now.
