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How can airlines balance their financial goals with their environmental impact?

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Airlines are facing a dilemma: how to pursue their financial goals while reducing their environmental impact. The aviation industry is responsible for about 2% of global carbon emissions, and this share is expected to grow as air travel demand increases. However, airlines also face pressure from customers, regulators, investors, and competitors to adopt more sustainable practices and technologies. How can airlines balance these conflicting objectives and find innovative solutions for a greener future? Here are some possible strategies:

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Aanuoluwapo "Annie" O.

Aircraft Maintenance Technician | Carrington Fellow '24/25 | Aerospace | Clean Energy | Climate Advocate | Propulsion |…

1 Reduce fuel consumption

One of the most obvious ways to lower the environmental impact of aviation is to reduce fuel consumption, which accounts for most of the emissions and costs of flying. Airlines can do this by improving their operational efficiency, such as optimizing flight routes, reducing weight, and minimizing delays. They can also invest in more fuel-efficient aircraft, engines, and components, or retrofit their existing fleets with new technologies. For example, some airlines are using winglets, which are curved extensions at the end of the wings, to reduce drag and save fuel.

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Ahmad M. Mandili

Director of MRO Operations Systems | Vision 2030 | Executive Management | Operations Technology | Digital Transformation | AMOS SME | Prosci? Certified Change Practitioner
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Reducing fuel consumption aligns financial and environmental goals for airlines. Employing efficient flight planning, optimizing routes, using newer aircraft with fuel-efficient technologies, and adopting weight-saving measures can lower costs and emissions. Investing in sustainable aviation fuels and operational improvements, like single-engine taxiing and efficient ground handling, further curtails fuel use. Balancing financial objectives with environmental impact involves embracing innovative technologies, operational adjustments, and sustainable practices to achieve cost savings while mitigating the airline industry's carbon footprint.

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2 Switch to alternative fuels

Another option for airlines is to switch to alternative fuels that have lower carbon intensity than conventional jet fuel. These fuels can be derived from various sources, such as biomass, waste, or renewable electricity. Some examples of alternative fuels are biofuels, synthetic fuels, and hydrogen. However, these fuels are not widely available or affordable yet, and they may require significant changes in the infrastructure and regulations of the aviation sector. Therefore, airlines need to collaborate with fuel producers, governments, and other stakeholders to overcome these challenges and scale up the production and use of alternative fuels.

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3 Offset emissions

A third strategy for airlines is to offset their emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere. These projects can include planting trees, restoring wetlands, or capturing and storing carbon. Offsetting allows airlines to compensate for their unavoidable emissions and demonstrate their commitment to sustainability. However, offsetting is not a permanent solution, and it may not be enough to meet the ambitious climate goals of the industry and the society. Therefore, airlines need to ensure that their offsetting projects are credible, transparent, and additional, meaning that they would not have happened without their support.

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4 Engage with stakeholders

A fourth strategy for airlines is to engage with their stakeholders, such as customers, employees, regulators, investors, and partners, to communicate their sustainability efforts and seek their feedback and collaboration. Airlines can do this by disclosing their environmental performance and targets, participating in industry initiatives and standards, and offering incentives and choices for their stakeholders to join their green journey. For example, some airlines are providing their customers with the option to offset their flights, choose greener routes, or fly on planes powered by alternative fuels.

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Randy Watson, IAAI-CFI, IAAI-CI, CFEI, CVFI

Director, Technical Training / Past President, International Association of Arson Investigators
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Engaging the stakeholders costs virtually nothing. The rewards could be monumental, on many fronts. Engaging stakeholders fosters a relation. A relationship based on a feeling of being valued. This also gives way to fresh ideas and new perspectives. Sure, some ideas will be crazy. However, someone may offer something that nobody thought of that could be a game changer.

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5 Innovate and experiment

A fifth strategy for airlines is to innovate and experiment with new ideas and solutions that can transform the aviation industry and make it more sustainable. Airlines can do this by fostering a culture of innovation, investing in research and development, and testing and implementing new concepts and technologies. For example, some airlines are exploring the potential of electric, hybrid, or supersonic aircraft, which could reduce emissions, noise, and travel time. Other airlines are experimenting with new business models, such as circular economy, which could reduce waste and resource consumption.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Aanuoluwapo "Annie" O.

Aircraft Maintenance Technician | Carrington Fellow '24/25 | Aerospace | Clean Energy | Climate Advocate | Propulsion | SAFs | Hydrogen | Founder, Young Aerospace Professionals Initiative | STEM Education Advocate
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One other thing I think could be helpful is educating passengers about carbon footprint reduction, encouraging sustainable travel choices, and offering options for carbon offsetting during ticket purchases can raise awareness and promote environmentally conscious behavior.

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How can airlines balance their financial goals with their environmental impact?

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1 Reduce fuel consumption

2 Switch to alternative fuels

3 Offset emissions

4 Engage with stakeholders

5 Innovate and experiment

6 Here’s what else to consider

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