DHL Express and the Cathay Group have signed a new sustainable aviation fuel (SAF) partnership aimed at reducing carbon emissions from cargo flights in Asia and boosting the regional supply of the low-carbon fuel.

Under the agreement, Cathay will supply DHL with 2,400 tonnes of SAF for flights operated by Air Hong Kong, a wholly owned Cathay subsidiary that provides dedicated express cargo services for DHL. The fuel will be used on international flights departing from Seoul Incheon, Tokyo Narita, and Singapore Changi airports.

According to the companies, the agreement will run through 2025 and is expected to reduce lifecycle greenhouse gas emissions by about 7,190 tonnes — equivalent to the emissions of more than 100 flights from Hong Kong to Singapore on an Airbus A330 freighter.

“Important Step” for SAF in Asia

Peter Bardens, Senior Vice President for Network Operations & Aviation – Asia Pacific at DHL Express, said SAF remains a small part of the global fuel mix but has significant potential to cut aviation emissions.

“Sustainable aviation fuel currently accounts for less than 1% of the total global jet fuel consumption, yet air transport is one of our biggest sources of greenhouse gas emissions,” Bardens said. “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.

DHL Express is at the forefront of SAF adoption, and we look forward to seeing more partners and customers join us on this journey to build a more robust SAF ecosystem in Asia. Our continued investment in this area aligns with DHL Group’s Strategy 2030, which recognises ‘green logistics of choice’ as one of the four bottom lines.”

The deal builds on a long-standing relationship between DHL and the Cathay Group, including through Air Hong Kong, which has supported DHL’s Asia Pacific network for more than two decades.

First SAF Use for Air Hong Kong

Tom Owen, Cathay’s Director Cargo, said the deal represents a milestone for the airline group.

“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,” Owen said. “SAF remains a core pillar of our strategy to address our carbon emissions, and collaboration is essential to scaling its use. We are excited to be working with like-minded partners like DHL Express to make SAF more accessible and scalable, particularly in Asia.”

The partnership also makes DHL a strategic partner in Cathay’s Corporate SAF Programme. Launched in 2022, the programme helps corporate partners address greenhouse gas emissions from business travel and airfreight. In 2024, it enabled the use of more than 6,000 tonnes of SAF, with 16 partners participating, including HSBC, AIA, and Standard Chartered.

Expanding SAF Supply

Cathay has been increasing SAF sourcing across the region. Earlier in 2025, it signed an agreement with Sinopec to supply SAF produced in mainland China for use at Hong Kong International Airport — the first such export from the Chinese mainland. It has also partnered with SK Energy to secure SAF supply in South Korea from 2025 to 2027.

Beyond supply contracts, Cathay co-founded the Hong Kong Sustainable Aviation Fuel Coalition to promote policy development and encourage adoption of SAF locally.

DHL’s Wider SAF Commitments

DHL Express has been a frontrunner in scaling up SAF use globally. It has secured long-term agreements with Neste, bp, and World Energy. In Japan, DHL partnered with Cosmo Oil Marketing to use SAF produced domestically for flights departing the country.

Earlier this year, DHL signed another agreement with Neste for 7,400 tonnes of SAF for international flights from Singapore Changi Airport, further demonstrating its push to build demand and supply across Asia.

The company says these initiatives will also help it better understand the logistics of transporting alternative fuels — an area it identifies as a growth sector under its Strategy 2030, which includes developing end-to-end logistics solutions for renewable energy and alternative fuel markets.

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