FORT WORTH- In a recent post-Q3 earnings call, American Airlines (AA) executives held an internal presentation and Q&A with employees, where CEO Robert Isom highlighted the airline’s significant fuel consumption.
Global airlines face mounting pressure to address their climate impact, particularly in Europe, where governments are intensifying efforts to curb air travel. Measures include limiting airport operations and banning short-haul flights to reduce emissions, flagged Viewfromthewing.
American Airlines Consumes 1% of Global Fuel
To avoid stricter regulations, airlines worldwide are setting climate goals and lobbying for subsidies. They argue that financial support, rather than new rules, would be more effective in meeting environmental targets.
According to Isom, American Airlines alone accounts for nearly 1% of the world’s refined petroleum use, putting it on par with major U.S. competitors Delta Air Lines (DL) and United (UA).
Maybe he wants to say that 1% of the total petroleum used by the aviation sector.
For context, American Airlines and its subsidiary operate around 6,700 flights daily. While Delta operates 5,400 flights per day and United over 4,500 daily flights.
Further, Isom broke down the numbers: the U.S. consumes about one-third of global refined petroleum, with 10% attributed to the aviation sector, and American Airlines represents approximately 25% of U.S. air capacity.
Isom stressed that fuel costs comprise about 20-25% of American’s operating expenses, noting the volatility in petroleum prices. For instance, each $1 increase in a barrel of oil can result in a $100 million shift in the airline’s profit and loss.
To mitigate fuel consumption, American Airlines is investing in newer, fuel-efficient aircraft. “Each new generation of aircraft engines uses about 15% less fuel per capita,” Isom said. He also emphasized the need for more direct air traffic control routing and improvements in the Federal Aviation Administration’s (FAA) technology to enhance fuel efficiency and sustainability.
‘Subsidies Is Solutions and Not Rules’
Airlines are ramping up their lobbying efforts for government subsidies on alternative fuels as part of their environmental strategy, though critics argue this approach may not effectively address aviation’s climate impact.
Air travel accounts for approximately 3.5% of global carbon emissions, half of which comes from cargo transport. Passenger flights contribute less than 2%, yet aviation receives a disproportionate level of scrutiny compared to other industries; for example, the fashion industry accounts for around 10% of global emissions but has faced less legislative action, says Gary Leff, ViewfromtheWing.
Per capita, CO₂ emissions in the U.S. have returned to levels seen in 1913, a significant milestone in emission reduction efforts. However, one major concern in aviation is contrail formation, which only occurs in about 15% of flights but contributes significantly to the sector’s climate impact.
Hydrogen-based fuels, while promising in some aspects, do not eliminate contrails. However, research shows that a 2,000-foot increase in cruising altitude can cut contrail formation by 62%, and a 4,000-foot increase could reduce it by 92%. For these altitude adjustments, airlines require more accurate meteorological data.
American Airlines, in collaboration with Google, recently tested a technology-driven approach to contrail reduction.
Over six months, American Airlines pilots conducted 70 test flights using Google’s AI-driven weather predictions, which were cross-referenced with Breakthrough Energy’s open-source contrail models to identify altitudes where contrails are likely to form.
Analyzing satellite imagery post-flight, researchers found that pilots reduced contrails by 54%—a promising step in demonstrating that commercial flights can avoid contrail formation, reducing their climate impact.
Everyone’s Responsibility
Robert emphasized the aviation industry’s need for collaboration to tackle climate change in a LinkedIn post.
He stated that while the airline industry is committed to reducing its environmental impact, it requires support from innovators, scientists, policymakers, and manufacturers to accelerate technology that enables decarbonization.
American Airlines recently sponsored the International Air Transport Association (IATA) Sustainability Symposium in Miami, where key industry stakeholders gathered to discuss sustainable solutions.
Isom joined fellow airline CEOs Carolina Martinoli, Enrique Beltranena, and IATA Director Willie Walsh to review the sector’s progress, outline policy needs, and address challenges facing global aviation in reducing emissions.
During the symposium, Isom also met with Juan Carlos Salazar, Secretary General of the International Civil Aviation Organization (ICAO), to explore partnerships that advance decarbonization goals.
The symposium focused on generating innovative ideas, establishing partnerships, and fostering collective action to address the environmental challenges facing aviation.
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