United Adds New Corporate Partners to Sustainable Flight Fund That Now Exceeds $200 Million

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Feb 14, 2024, 09:00 ET

Aircastle, Air New Zealand, Embraer, Google, HIS, Natixis CIB, Safran, and Technip Energies are now part of first-of-its-kind effort to reduce emissions and drive production of sustainable aviation fuel (SAF) by providing startups with both financial and strategic capital

United customers play a role too, with more than 115,000 people contributing nearly $500,000 since February 2023

CHICAGO, Feb. 14, 2024 /PRNewswire/ -- United today announced that Aircastle (a Marubeni & Mizuho Leasing Company), Air New Zealand, Embraer, Google, HIS, Natixis Corporate & Investment Banking, Safran Corporate Ventures, and Technip Energies are now among the 22 corporate partners that make up the airline's The United Airlines Ventures Sustainable Flight Fund^SM, a first-of-its kind effort to reduce emissions and drive production of sustainable aviation fuel (SAF) through investments in startups.

United Adds New Corporate Partners to Sustainable Flight Fund That Now Exceeds $200 Million

These corporate partners make up all parts of the aviation supply chain – airlines, aircraft and engine manufacturers, fuel producers, engineering and technology experts, financiers, travel management and more – and have now committed more than $200 million while collaborating to provide strategic expertise to help the Fund's portfolio companies reach commercialization.

Since its inception in February 2023, the Fund remains aviation's first and only venture fund backed by a broad limited partner base and created to identify and support startups advancing feedstock and technology development focused on increasing the supply of SAF.

The airline has included a way for everyday consumers to participate as well. Anyone using United.com or the United app has an option to contribute to supplement United's investment in the UAV Sustainable Flight Fund^SM before check-out. Users have the choice to contribute $1, $3.50 or $7.00.¹ Continuing in the effort toward climate transparency for our customers, United also now shows an estimated carbon emissions for flights booked through United.com or the United app. In less than 12 months, more than 115,000 people have contributed nearly $500,000 since February 2023.

SAF is an alternative to conventional jet fuel that, on a lifecycle basis, reduces greenhouse gas (GHG) emissions associated with air travel compared to conventional jet fuel alone. To date, United has invested in the future production of over five billion gallons of SAF - the most of any airline in the world.²

"SAF is the best tool we have to decarbonize airplanes, but we don't have enough of it. To create the fuel supply we need for our fleet, United recognized that we would have to help build a brand-new industry from scratch – like wind and solar in previous decades," said Andrew Chang, Managing Director of United Airlines Ventures. "As part of our effort to build a new sustainable aviation ecosystem, we recruited a group of partners with the industry expertise to support our startups with both financial and strategic capital, to help them navigate the entire process from conception to commercialization."

Sustainable Flight Fund Milestones

Added 22 corporate partners
Raised more than $200 million in committed capital
Portfolio company milestones:

UAV Sustainable Flight Fund

The UAV Sustainable Flight Fund^SM is a first-of-its-kind investment vehicle designed to leverage support from cross-industry businesses in order to support start-ups focused on decarbonizing air travel through SAF research, technology and production. The fund is comprised of more than $200 million in investment commitments from United and corporate partners including: Air Canada, Air New Zealand, Aircastle (a Marubeni & Mizuho Leasing Company), American Express Global Business Travel, Aviation Capital Group, Boeing, Boston Consulting Group, Embraer, GE Aerospace, Google, Groupe ADP, Hawaiian Airlines, HIS, Honeywell, JetBlue Ventures, Natixis Corporate & Investment Banking, Safran Corporate Ventures, and Technip Energies, among others. For more information about the fund, please visit the United Airlines Ventures website.

Consumer Awareness and Call to Action

The default option for customer contributions is set at $3.50 to illustrate the potential impact of customer action at scale: if the 152 million people who flew on United in 2022 each contributed just $3.50 to the UAV Sustainable Flight Fund, that would be enough to design and build a SAF refinery capable of producing as much as 40 million gallons of alternative fuel annually.³

United's Commitment to Net Zero Emissions by 2050

United aims to be net zero by reducing its greenhouse gas emissions by 100% by 2050, without relying on traditional carbon offsets. In addition to the UAV Sustainable Flight Fund^SM, United has launched a SAF purchasing program called the Eco-Skies Alliance and established a venture fund – United Airlines Ventures – to identify and invest in companies and technologies that can help decarbonize air travel. These strategic investments include carbon capture, hydrogen-electric engines, electric regional aircraft and air taxis. In May 2023, United received validation of our 2035 near-term emissions reduction target from the Science-Based Targets Initiative (SBTi) to reduce our carbon intensity 50% from a 2019 base year. In 2023, United became the first U.S. airline to show customers an estimate of each flight's carbon footprint in their search. This year, United was the only domestic airline to receive an 'A-" leadership band score for Climate Change 2023 from CDP, formerly Carbon Disclosure Project.

About United

At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

United Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, plans and projections regarding the company's environmental, social or governance (ESG) goals, targets, commitments, strategies and initiatives and related business and stakeholder impacts. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about our future plans, objectives, goals, targets, commitments, strategies and initiatives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond our control and could cause our future plans, objectives, goals, targets, commitments, strategies and initiatives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties and other factors include, among others, any failure to meet stated ESG goals, targets, commitments, strategies and initiatives in the time frame expected or at all as a result of many factors, including changing societal, market, competitive, regulatory or stakeholder expectations, any delay or inability of United Airlines or the United Airlines Ventures Sustainable Flight Fund (the "SFF") to realize the expected benefits of the investments, including from a delay or failure of any project to be fully developed or become operational or to produce sustainable aviation fuel or other ESG-related product in the amounts contemplated or at all, or a failure of the SFF to achieve any return on an investment by the SFF or a realization of a partial or total loss of any investment by the SFF. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect United's business and market, particularly those identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections in United's Annual Report on Form 10-K for the year ended December 31, 2022, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. Risks and uncertainties related to United's environmental compliance, climate commitments and climate strategy are further described in Part I, Item 1A. Risk Factors of United's Annual Report on Form 10-K for the fiscal year ended December 31, 2022—"We are subject to many forms of environmental regulation and liability and risks associated with climate change and may incur substantial costs as a result. In addition, failure to achieve or demonstrate progress towards our climate goals may expose us to liability and reputational harm."

The statements included in this press release are made only as of the date of this press release and except as otherwise required by applicable law or regulation, United Airlines undertakes no obligation to publicly update or revise any statement, whether as a result of new information, future events, changed circumstances or otherwise. In particular, United Airlines reserves the right to change, amend, supplement or abandon some or all of the statements regarding goals, targets, commitments, strategies, initiatives, intentions and other statements from time to time without notice.

In addition, some of our disclosures in this press release are estimates or based on assumptions due to inherent measurement uncertainties. For example, United's statement that it has already invested in the future production of more than five billion gallons of SAF – the most of any airline in the world is based on publicly announced future purchase agreements for SAF of certain airlines as of the date hereof. The use of words such as "partnered," "partnering," "partner" and variations of such words in this press release is not intended to and shall not be construed to imply that a legal partnership relationship exists between United and any other company.

¹ Customers will not have any interest in United's investments made with customer contributions, and customers will not participate in any gains or losses associated with United's investments in the UAV Sustainable Flight Fund.

² Based on publicly announced airline offtake agreements for future purchases of SAF.

³ United derived these approximated figures based on an illustrative capital expenditure benchmark of $200,000 per barrel per day to build a SAF production facility.

SOURCE United Airlines