Centre for Aviation, the world’s most trusted source of aviation market intelligence and a part of the Aviation Week Network, and Envest Global have released the latest edition of the CAPA-Envest Global Airline Sustainability Benchmarking & Rating Report.The report combines CAPA’s deep aviation industry knowledge with Envest Global’s sustainability experience and insight into carbon reduction strategies.
The latest edition has been expanded and updated, with revisions incorporating the latest available financial, operational and environmental data from more than 100 major airlines.
These airlines collectively account for more than 75% of global traffic.
Key themes emerging from the latest edition of the report include:
- The airline industry’s overall emission grew with the overall recovery in traffic. At the same time, higher traffic has resulted in significant improvements in unit emissions performance for multiple individual airlines as traffic returns towards historical levels.
- The industry remains lacking when it comes to reporting of metrics around sustainability and emissions performance. The sector is generally lacking when it comes to standardisation of reporting.
- There is a notable divergence between airline operating models. Low cost carriers generally outperform their full service peers when it comes to emissions on a per unit basis.
- Sustainable aviation fuel (SAF) uptake is increasing, yet remains a bare fraction of total industry fuel consumption. SAF use is concentrated with certain operating models and geographies.
- There are wide variations in sustainability performance from region to region. Some of this relates to differences in the timing and rate of the post-COVID-19 travel recovery. However, some geographies are emerging as clear leaders in terms of sustainability performance.
- Airlines face a significant challenge in building the financial capacity necessary to absorb the cost of their carbon emissions and/or make the necessary investments in aircraft and technology to reduce emissions.
The CAPA Envest Global Environmental Sustainability Benchmarking Report 2023 was also used to select the airline winners of CAPA’s annual Environmental Sustainability Awards for Excellence.
Awarded in Nov-2023 during the CAPA Asia Aviation Summit, these awards recognise the airlines which have established themselves as leaders among their peers in terms of environmental efficiency and overall sustainability performance.
In this release we take a closer look at the winners of each category, highlighting key statistics which led to the selection of these airlines for the awards.
For an in-depth review of these and the top 100 airlines globally, visit: centreforaviation.com/shop/capa-envest-airline-sustainability-benchmarking-report-2023
Global Environmental Sustainability Airline/Airline Group of the Year: Wizz Air
Wizz Air received the CAPA Global Environmental Sustainability Airline/Airline Group of the Year. This is the second consecutive year the airline has received the award.
Wizz Air being a clear winner from the latest CAPA-Envest Global Airline Sustainability Benchmarking & Rating Report in terms of unit emissions, the airline’s sustainability performance stands out among its regional and international peers.
The airline’s environmental performance is informed by its ultra-low cost model, featuring very high seat densities and operational performance, notably its very high load factors and route efficiency.
This is supported by Wizz Air’s ongoing investment in modern, high-efficiency aircraft, as well as its move to support SAF research and ongoing training efforts among staff.
Wizz Air emerged from the COVID-19 pandemic as one Europe’s clear winners in terms of traffic and network growth.
As growth continues in Europe, Wizz Air is expanding its commitment to sustainability, while also leading the restoration of connectivity. As the airline refines and improves its operating model, it intends to continue to improve its overall sustainability performance.
Europe, Middle East and Africa Environmental Sustainability Airline/Airline Group of the Year: Pegasus Airlines
Pegasus Airlines was awarded the CAPA Environmental Sustainability Airline/Airline Group of the Year for the Europe, Middle East and Africa region. The Turkish low cost carrier has been among the fastest expanding airlines of the post-pandemic era. The airline passed its pre-pandemic operating peak during 2022, while also managing to achieve record revenue and profit.
The latest CAPA-Envest Global Airline Sustainability Benchmarking & Rating Report shows that Pegasus Airlines managed this while simultaneously achieving some of the lowest per unit emissions and highest load factors in the region, onboard one Europe’s youngest aircraft fleets.
Alongside this, Pegasus has been a pioneer in embracing the wider sustainability challenges that the air travel sector faces.
The airline has launched initiatives around social and corporate responsibility, promoting employee diversity and gender equality in aviation. It is also involved in innovative partnerships in areas such as training, digitalisation, fleet management, and environmental sustainability.
Pegasus Airline is now rapidly expanding its traffic, network and fleet: it is seeking new markets around Eastern Europe and Central Asia, with orders in place to grow its high-capacity narrowbody fleet by 70% by 2029.
Pegasus Airlines: key operating and environmental metrics
Asian Environmental Sustainability Airline/Airline Group of the Year: IndiGo
IndiGo was awarded the Environmental Sustainability Airline/Airline Group of the Year for the Asia Pacific region. IndiGo was the clear leader in terms of unit emissions performance in the Asia Pacific.
Now the largest airline in the fast growing Indian market, IndiGo has placed record orders for high-capacity and high-efficiency narrowbodies. It is also undertaking a range of partnerships and operational programmes that are intended to reduce its environmental impact.
These actions are not just aimed at improved fuel efficiency at the airline, but also at promoting the sustainability of its operations onboard its aircraft, on the ground, and within its corporate headquarters.
Under its ‘Reassure, Develop and Create’ growth strategy, IndiGo has huge ambitions for the future.
With an industry-leading order book of more than 950 aircraft, IndiGo plans to double its size within the decade, while improving unit fuel efficiency still. At the same time, the airline seeks to remain true to its low cost service proposition and deliver growth in the most financially and environmentally sound way possible.
IndiGo: key operating and environmental metrics
Latin American Environmental Sustainability Airline/Airline Group of the Year: Volaris
Volaris has been awarded the Environmental Sustainability Airline/Airline Group of the Year for Latin America.
The Mexico-based Volaris was one of the standouts in terms of environmental performance – not just for Latin America, but across the entirety of the Americas.
With a vision of delivering “widespread, accessible, and sustainable air travel”, Volaris is one of the few Latin American LCCs that can be said to be a leader in acting on the industry’s sustainability challenge.
The airline has set a long term corporate and ESG strategy that is based around: transitioning its fleet to next generation narrowbodies; introducing fuel performance and carbon emissions reductions targets; embracing the IATA ‘Fly Net Zero’ commitment; and promoting gender diversity.
This strategy means that Volaris is branching out into innovations and partnerships. This includes sustainability-linked pre-delivery aircraft financing facilities, working with Airbus to improve both the affordability, and the availability of SAF in Latin America, as well as pioneering efforts around climate-related financial disclosures and governance improvements.
Volaris: key operating and environmental metrics
North American Environmental Sustainability Airline/Airline Group of the Year: Alaska Airlines
Alaska Airlines has been awarded CAPA’s North American Environmental Sustainability Airline/Airline Group of the Year.
Alaska Airlines placed closely ahead of several North American peer airlines when it came to overall sustainability performance.
While the airline is the only ‘Gold’ rated airline to receive a sustainability award – reflecting the environmental challenges that North America’s operating environment places on airlines – Alaska Airlines was a standout for its leading role in embracing the challenges of aviation sustainability and producing innovative solutions.
In recent years Alaska Airlines has worked with partners to expand the supply and use of SAF, and introduced AI-powered route optimisation technology to improve the efficiency of its flying. It has also committed to a venture to support start-ups that solve core strategic challenges for aviation, and invested in the development of potentially revolutionary technologies, such as hydrogen-electric propulsion.
Beyond this, the airline has introduced incentive programmes for travellers to reduce their carbon footprints, expanded its use of recycling, and launched a new pilot academy and aviation hiring programme to expand diversity in hiring and representation within its leadership.
Alaska Airlines: key operating and environmental metrics
