As the global aviation industry accelerates toward net-zero carbon emissions, sustainable aviation fuel (SAF) has emerged as a critical lever for decarbonization. While much of the conversation has focused on global carriers and international routes, regional and domestic airlines are uniquely positioned—and uniquely challenged—when it comes to adopting SAF. The post-pandemic surge in local travel, evolving consumer expectations, and region-specific regulatory landscapes have created both opportunities and hurdles for these carriers. By embracing digital transformation and practical sustainability initiatives, regional airlines can lead the way in scaling SAF and delivering on the promise of greener air travel.
The shift toward local and regional travel is not a passing trend. In markets like China, daily domestic flights have surpassed pre-pandemic levels, while in the U.S., domestic leisure travel has driven the industry’s recovery. Travelers are prioritizing safety, flexibility, and proximity—making short-haul getaways and regional business trips the new norm. Regional airlines, with their closer community ties and operational agility, are well-placed to capture this demand. However, they must also navigate a complex landscape of supply chain constraints, regulatory requirements, and rising consumer expectations for sustainability.
SAF production remains a fraction of what is needed to meet ambitious decarbonization targets. To reach the U.S. government’s goal of 3 billion gallons of SAF by 2030, production must increase by 9,000% from 2021 levels. Regional carriers, often operating from smaller airports and serving less densely populated areas, face additional hurdles in securing reliable SAF supply. The limited availability of truly sustainable feedstocks and the risk of incentivizing less sustainable biofuels further complicate the picture.
Governments are increasingly mandating SAF blends and tightening emissions reporting requirements. In the U.S., the Inflation Reduction Act offers tax credits to incentivize SAF adoption, while in other regions, mandates and carbon taxes are on the rise. Regional airlines must not only procure and blend SAF but also accurately track, report, and verify emissions reductions—often across multi-jurisdictional supply chains.
Sustainability is no longer a “nice to have.” Younger travelers, in particular, are willing to support airlines that demonstrate genuine environmental commitment. According to industry research, a significant portion of Gen Z and Millennials consider sustainability a key factor in travel decisions. Investors, too, are scrutinizing airlines’ emissions data and sustainability strategies, making transparent reporting and measurable progress essential.
Regional carriers are investing in newer, lighter aircraft and adopting operational practices—such as optimized flight paths and weight reduction measures—to lower fuel consumption and emissions. These efforts not only reduce carbon footprints but also deliver cost savings and operational efficiencies.
While SAF adoption is challenging, regional airlines are participating in pilot programs and forming partnerships to increase usage. Digital platforms are critical in tracking SAF procurement, optimizing fuel blends, and ensuring compliance with regulatory and investor requirements.
Providing passengers with clear information about the carbon footprint of their flights—and offering options to offset emissions—is becoming standard practice. Digital tools make it easy for travelers to participate and for airlines to report on progress, building trust and brand loyalty.
Initiatives to minimize single-use plastics and improve recycling onboard are gaining traction. Some airlines have set ambitious targets for waste elimination, further enhancing their sustainability credentials.
To navigate the complexities of SAF adoption, regional airlines need robust, data-driven platforms that provide end-to-end visibility, forecasting, and optimization. Centralized, cloud-based data management systems enable airlines to:
Platforms like Publicis Sapient’s eMission Cloud View offer a single source of truth for emissions forecasting, benchmarking, and reporting. By leveraging such solutions, airlines can achieve operational expenditure reductions of 10-15% and energy efficiency improvements of 5-10%, while ensuring they remain on track to meet net-zero commitments.
Leading U.S. regional carriers have accelerated the adoption of contactless technologies, from mobile boarding to digital customer service, while also investing in SAF and transparent sustainability reporting. These efforts are supported by cloud-based data management systems that enable real-time monitoring and optimization.
China’s domestic market has seen record numbers of flights and spending, driven by government policies and digital agility. Airlines have rapidly adapted to changing regulations and consumer expectations, leveraging digital tools to manage capacity and deliver seamless, safe experiences. Participation in SAF pilot programs is growing, supported by strong government incentives.
Air New Zealand has committed to carbon neutrality, investing in efficient aircraft, exploring biofuel opportunities, and launching a FlyNeutral carbon offset program. The airline uses digital platforms to monitor and report on emissions, and to engage customers in sustainability efforts—demonstrating how regional carriers can lead in both sustainability and customer experience.
The rise of domestic and regional air travel is a defining feature of the post-pandemic world. Airlines that embrace digital transformation and sustainability at the local level will be best positioned to capture new demand, build lasting customer relationships, and meet the expectations of both travelers and regulators. Success will require ongoing investment in technology, cross-industry collaboration (especially around SAF and emissions tracking), and a willingness to innovate in response to evolving market dynamics.
At Publicis Sapient, we help airlines and travel brands navigate this transformation, combining deep industry expertise with cutting-edge digital solutions. By focusing on customer experience, operational agility, and sustainability, regional and domestic airlines can not only recover but thrive in the new era of travel.