Air New Zealand has become the first major airline to withdraw from its short-term climate goals, citing delivery delays and the high costs of alternative jet fuels.

The airline has decided to remove its previous target of a 28.9% reduction in carbon intensity by 2030, which was set against a 2019 baseline.

This decision is influenced by aircraft shortages and the limited availability of sustainable aviation fuel (SAF), which is crucial for achieving emissions targets.

Air New Zealand is currently facing delays in receiving new aircraft, including eight Boeing 787 Dreamliners and five Airbus A320neo planes, which is impacting its fleet renewal plans.

CEO Greg Foran indicated that the airline may need to extend the use of its existing fleet longer than planned due to ongoing global manufacturing and supply chain issues.

The decision to drop the emissions target highlights the broader challenges the aviation industry faces in meeting climate goals through improved aircraft design and cleaner fuel usage.

This move is part of a trend, as other airlines, including United Airlines and Lufthansa, have also removed their near-term emissions commitments, reflecting widespread difficulties in the sector.

Australia's Minister for Climate Change noted that Air New Zealand's situation underscores the necessity for government involvement in addressing aviation emissions.

The aviation industry is heavily reliant on sustainable aviation fuel and new, efficient aircraft to lower emissions, yet SAF usage remains below 1% among major airlines.

CEO Greg Foran has expressed concerns that global supply chain issues, fuel affordability, and regulatory policies present significant obstacles to meeting emissions targets.

Despite these challenges, Air New Zealand maintains its commitment to achieve net zero emissions by mid-century.