REPORTAIR TRAVEL A SUSTAINABLE FUTURE
THE FUTURE OF TRAVELINTRODUCTION
LAYING THE FOUNDATIONS FOR THE FUTUREA SUSTAINABLE JOURNEY
RAIL HAS A ROLE TO PLAYSUMMARY

February 2023

© 2023 BCD Travel N.V. All rights reserved.

Introduction
The aviation industry is emerging from one of the deepest and longest downturns in recent history. Airlines must now rebuild their businesses and their balance sheets. In the
post-pandemic world, they must also contend with an elevated awareness of aviation’s impact on the environment, and on climate change in particular, and widespread demands for action
to mitigate this impact. This will require the aviation industry to accelerate innovations underway before the downturn and embrace newly emerging technologies. In this new paper, we layout the foundations for the future, explore aviation’s path to sustainable air travel and consider what this could mean for travel programs and business travelers.

2

IATA, Industry Statistics Fact Sheet, Dec. 20191

Pre-pandemic
outlookPre-pandemic
outlook

77

1%
+4 .

66
55

5%

+5.

44
33
22

2035
2035

2034
2034

2033
2033

2032
2032

2031
2031

2030
2030

2029
2029

2028
2028

2027
2027

2026
2026

2025
2025

2024
2024

2023
2023

2022
2022

2021
2021

2020
2020

2019
2019

2018
2018

00

2017
2017

11

2016
2016

Since the early days of commercial aviation, the industry has faced multiple periods of disruption anddownturn, with two Gulf Wars, the aftershock from the 9-11 terror attacks and 2008’s global financial
crisis among some of the more recent examples. While none of these later events have been of themagnitude nor duration of the pandemic, IATA is confident that air travel will once again bounceback stronger than ever. Indeed, the release of pent-up demand should drive annual growth of 5.5%
between 2023 and 2035; this is higher than the 4.1% growth, should IATA’s pre-pandemic prediction
been sustained going forward. Air travel should rebound stronger than ever.

LatestLatestforecast
forecast

2015
2015

Over the last three years, air travel and aviation companies have taken a big hit from the COVID-19
pandemic. For periods lasting weeks or even months, markets around the world were completely closed
to air travel. And when they reopened, travelers had to navigate complex restrictions and regulations,which often changed at short notice, while having to assess the likelihood of their trips being disrupted
or their health being put at risk. An inability to travel, combined with a reduced desire among many
travelers to take a flight, hit demand hard. Pre-pandemic, the International Air Transport Association(IATA) had predicted global airline traffic in 2020 would post a second year of growth of just over 4%.1
Ultimately, airline traffic (revenue passenger kilometers) contracted by 67%, while passenger volumes
declined by 61%.

88

Global passengers (million)

Air travel was hit hard by the pandemic

Global airline passenger outlook: post-pandemic reboundGlobal passengers (million)

Laying the foundations for the futureSustainability surges up the travel
agendaAmid talk of a wider global reset in the wake of thepandemic, sustainability has surged up the travel agenda,
as calls grow for a coordinated response to the existential
threat many consider climate change presents.
Airlines’ corporate customers concur with this sentiment,
making it very clear that they want their employees
to travel sustainably. Almost two-thirds of travel
managers rate environmentally sustainable
travel as very or extremely important. 2 A similar
proportion (61%) already operate travel programs that
actively encourage sustainable travel options. With
three-quarters of travel managers prioritizing a reductionof travel’s environmental impact, there’s clearly more
to come on the sustainability front as programs andpriorities more closely align.
The position of travel managers echoes the views oftravelers. Research by U.K. low-cost carrier EasyJet
found that over three-quarters of its travelers thinkthat companies need to urgently set out their plansto achieve net-zero and demonstrate how they areoperating more sustainably. 3

3

2
3

BCD Travel survey of 101 travel buyers, April 6-26, 2021
Future Travel Experience, Sept. 2022

How important is environmentally sustainable travel?

Not at all,3%

Slightly,

11%

Extremely,

21%

Moderately,

21%

Very,

44%

The International Civil Aviation Organization (ICAO), a
United Nations (UN) agency, followed IATA in October
2022, agreeing a collective long-term aspirational goal
(LTAG) of net-zero carbon emissions for 2050 for global
aviation.5 The agreement among 184 governments and 57
organizations adds extra impetus towards decarbonized
air transport and the green innovation required toachieve it. This will start with the accelerated adoptionof new and innovative aircraft technologies, streamlined
flight operations and the increased production andavailability of sustainable aviation fuel (SAF). It ultimately
aims to deliver emissions-free powered flight. But this will
come at a cost at probably the worst time for aviation.

As they attempt to repair their balance sheets, airlines
will need to respond to growing calls from consumers,
governments and regulators for a more sustainableapproach to aviation.

The future of air travelneeds to be sustainable, notjust environmentally, butfinancially too. The future of
air travel will be built aroundsustainable innovation.
In this new report, we consider how aviation isprogressing towards a future of sustainable air travel,
touching on some of the issues impacting travel
programs, travel managers and business travelers.

IATA, Oct. 4, 2021
ICAO, Oct. 7, 2022
6
IATA, Sept. 2022
445

Impact of the pandemic on U.S. airline profits
70
70
Accumulated net income US$ bn

Airlines suffered immense financial damage during the
pandemic. By the third quarter of 2022, the four largest
U.S. carriers had together sustained net losses of US$36
billion since the start of the pandemic, erasing the profits
accumulated over the previous four years. Airlines
desperately need to rebuild their finances, andthis won’t be easy. Amid heightened geopolitical turmoil
and concerns about economic recession, the outlook for
demand has become less certain, while high fuel andlabor costs continue to weigh on profits.6

Accumulated net income US$ bn

The prospect for a period of stronger than previously
forecast growth in air travel increases the imperative on
aviation to respond to concerns about its environmental
impact. As a long-time target of the environmental lobby,
aviation has renewed its commitments to reduce its
environmental impact and is taking action. IATA, which
represents more than 300 airlines, has committed to
net-zero carbon emissions by 2050.4 It recognizes thechallenge of reducing emissions while accommodating
the growing demand for air travel. Individual airlines aremaking their own commitments and developing plans toachieve them.

60
60-$36 bn

50
50

40
40
30
30
20
20
10
10
00

2015
2015

2016

2017
2017

2018
2018

2019
2019

2020
2020

2021
2021

2022
2022

A sustainable journey
Sustainability: Providing a competitive edge
Most airlines have now created and published their roadmaps towards achieving net-zerocarbon emissions by 2050. They recognize that their sustainability credentials
increasingly matter to consumers, who want to take action today to reduce theirown carbon footprints. Keen to capitalize on the competitive advantage they offer, airlines
now actively publicize their own sustainability initiatives. They often engage directly withpassengers, who may demand action from their corporate travel programs.
That they are now using sustainability as a competitive tool demonstrates how importantit’s become in shaping airlines’ business decisions. And it is important to airlines. AfterRyanair claimed to be greener than its rivals, claiming to generate 66-70 grams of CO2 perpassenger, rival Wizz Air responded with a lower figure of 55 grams for its own operations.
Ryanair hit back by declaring itself Europe’s greenest major airline.
But what can aviation genuinely do in its pursuit of sustainable air travel? Many airlines
are starting their journeys towards net-zero with sustainable aviation fuel.

Airlines’ sustainability
credentials increasingly
matter to consumers.
5

Sustainable Aviation Fuel
Sustainable aviation fuel (SAF) presents the most practical immediate solution for reducing air travel’s carbon
footprint. In fact, SAF is a proven solution: In 2008, a Virgin Atlantic Boeing 747 became the first commercial aircraft to be
powered by a blend of conventional jet fuel and SAF.7 And by 2017, more than 100,000 flights were powered by a SAF blend,
according to IATA.
SAF is a catchall term for fuels that are renewable or derived from waste and meet certain sustainability criteria. Raw
materials or feedstocks are varied and include tallow, used cooking oil, corn starch, renewable diesel and mixed alcohols.
Producers continue to explore new and more sustainable sources. For example, carbon technology business Air Company
plans to use renewable energy to make SAF from captured CO2 and has already secured orders from airlines, including
JetBlue Airways and Virgin Atlantic.8

Sustainable aviation fuels are renewable or derived fromwaste and meet certain sustainability criteria.
SAF is a drop-in fuel, meaning it can be dropped in as a replacement for fossil-based fuel. Aircraft
are currently permitted to fly with up to 50% blended SAF. But once combined with conventional jet
fuel in a 50:50 ratio, a SAF blend has the same characteristics as a fully fossil-based fuel and should
be suitable for use on any aircraft certified for Jet A or Jet A-1 fuel. Airbus and Finnish energy company
Neste are among the companies looking to enable 100% SAF-powered flights.9 They believe certification
can be achieved before 2030.

Fuels and Lubes magazine, March 4, 2020
BTN, Sept. 22, 2022
9
Airbus, Nov. 30, 2022
7
8

6

SAF can reduce CO2
emissions by up to 80%.

Unlike other alternative fuels under development,such as hydrogen, SAF can be handled by existing
infrastructure. IATA claims SAF offers a reduction in
CO2 emissions of up to 80%, and the figure could beeven higher, should carbon be sequestered during the
production process. But it’s important to understandthat SAF does not reduce carbon emissions from flying.
Its carbon benefit is realized only once the full lifecycle
is considered.10 Emissions from SAF production arelower and the feedstocks used to create them should nottheoretically run out.
While SAF is capable of being an immediate solution,it’s still only at the beginning of its journey. In 2020,it accounted for less than 0.1% of total aviation fuelconsumption, but that’s about to change as airlines
and producers commit to scaling up the use andavailability of SAF.

SAF’s benefits are only
realised once the fulllifecycle is considered.

7

10

BTN Sustainability Newsletter, Oct. 19, 2022

Travel programs are interested in SAF
Corporate travel programs are taking note of SAF, with a small but growing number committing to its use. Watchmaker
Breitling aims to reduce its CO2 emissions from air travel by up to 80% by purchasing enough SAF to cover all of its businesstravel on Swiss International Airlines.11 It’s not clear exactly how this arrangement will work in practice, but it’s unlikely to
involve Breitling employees only traveling on SAF-powered flights. It’s more likely that Breitling can claim carbon neutrality
by funding the airline’s wider use of SAF across its flying program. Some audit trail will need to exist to ensure
Breitling is getting value for its carbon dollars. Other companies are taking a more targeted approach. Volvo Group hasdone a deal with Braathens Regional Airlines specifically on its twice-weekly services between Gothenburg and Lyon. It’s asmall start, but it feels like a more manageable arrangement and is one that will reduce CO2 emissions by at least 40%
from day one.
There doesn’t appear to be a standard approach for engagement between travel programs and airlines in respect of
SAF. The need for bespoke arrangements may add extra complexity to supplier relations. And as more companies
commit to using SAF, it’s not clear what happens if the sum of all corporate client commitments to SAF exceeds
aviation’s ability to supply it.

There’s unlikely to be enough SAF to go aroundTo meet aviation’s net zero commitment, SAF will need to account for 65% of the industry’s carbon mitigationin 2050.12 This would require 449 billion liters of SAF to be produced annually. Current investments should
enable 5 billion liters of SAF to be produced by 2025. With the right incentives, IATA estimates production
could reach 30 billion liters by 2030. This could be the tipping point needed to promote large scale SAF
production and use.

BTN Europe, September 20, 2022
IATA, June 21, 2022

11

8

12

Delta and BCD sign first global
travel management SAF deal
In 2021, Delta Air Lines and BCD Travel signed
the first-ever sustainable aviation fuel (SAF)
agreement for a travel management company toaddress the emissions from BCD employee travel.
READ MORE

Airlines are expected to consume 84 billion gallons of fuelin 2022;13 that’s 382 billion liters. And this is before flights
have returned to pre-pandemic levels. Put quite simply,
the 30 billion liters of SAF that could be produced by 2030
would cover less than 8% of global aviation’s current
needs. Of course, extra production and new sources of SAF
will continue to come on line over the next seven years, but
capital projects don’t happen overnight, so it will take years
for production to ramp up. It seems clear that SAF production
will fall far short of a meaningful percentage of the fuel consumedby aviation. And it’s not simply a short term issue. Energy information
provider ICIS expects SAF’s share of global fuel consumption will still be less than 20% in
2050, far short of IATA’s 65% goal.
While it’s possible for SAF production to exceed IATA’s expectations, there are also
concerns about the suitability and availability of feedstock. Some are byproducts of highgreenhouse gas emitting industries, casting doubts on their low carbon credentials. And
there’s only so much biowaste available. Once supplies are exhausted, SAF producers
will have to turn to other sources. This could include switching agricultural land fromfood to biofuel production. The potential to create food and water shortages and push
up food prices for sake of sustainable aviation risks damaging SAF’s environmental
credentials.

IATA, Fuel Fact Sheet
BTN, Sept. 22, 2022
15
BTN Sustainability Newsletter, Oct. 19, 2022
16
CAPA, Jan. 4, 2022
13

14

9

Airlines may already recognize the limitations of SAF. Cathay Pacific has set a goal ofusing SAF for just 10% of its fuel needs by 2030.14 Given the apparent urgency to reduce
aviation’s environmental impact, there are clearly other approaches needed to deliver
sustainable aviation.

Cost may be SAF’s biggest challenge
Should sustainable air travel be pursued at any price? SAF carries a higher cost than thefossil-based fuel it’s replacing. Estimates suggest SAF can be anywhere between two
to eight times more expensive than the crude oil-based jet fuel it’s replacing.15
Given the current state of their finances, it’s unlikely that airlines will
be prepared to absorb this extra cost, which seems most likely to
be passed on to customers. Unless this price premium is reduced,
it could make air travel prohibitively expensive. It’s likely
to be some time before enough SAF is produced, for the
economies of scale to start bringing down its price.
Governments may need to step in. In Denmark, to promote
the use of SAF on domestic flights, the government plans
to offer a subsidy from 2027, which will be funded by the
introduction in 2025 of a DKr13 (US$1.70) passenger
tax on all departures.16 Everyone pays.

Other forms of power may be abetter long-term bet
SAF provides some immediate relief and enables
aviation to show it is taking direct action to reduce its
environmental impact. But there are other ways topower aircraft in a sustainable way, albeit still someyears away. Various forms of electric power will reduce
emissions and may even offer emissions-free flight.

HYDROGEN

FULL-ELECTRIC

The steps towards sustainably-powered flight

HYBRID-ELECTRIC

Image credit: ZeroAvia

x

Ampaire Eco Caravan nine-seater conversion+ Certification possible in 2024.
+ Emissions reduced by 70%.
Heart Aerospace 30-seater ES-30
Image credit: Eco Caravan, Ampaire+ Planning 2028 service entry.
+ Battery range of 200km, rising to 400km underhybrid-electric power.
Click button
for more

10

Image credit: Alice, Eviation

Hybrid-electric – the first step
Combining combustion and electric propulsion, hybrid-electric powered flight is close to becoming a commercial reality. Ampaire’s nine-seater Eco Caravan has already made its first test
flight, bringing the first hybrid-electric regional services an important step closer.17 The Eco Caravan reduces fuel consumption and emissions by up to 70%; net emissions can beclose to zero if SAF is used. And just as importantly for airlines and their customers, operating costs may be reduced by 25-40%, depending on airline route structure. Ampaire isalready planning hybrid-electric upgrades for larger aircraft, such as the 19-seat De Havilland Canada DHC-6 Twin Otter, for which it’s already secured an interest for 50 examples from air
mobility company WingTips.18
Fully-electric powered aircraft are presently range-limited because of the weight and energy capacity of current generation batteries. But that will inevitably change given the rapid progress
made recently in battery development for automotive applications. Hybrid-electric is just the start, until full-electric delivers the range and capacity required to be a commercially viableoption. Hybrid-electric enables airlines to start decarbonizing air travel while benefiting from lower operating costs. And as the conventional engine can recharge thebatteries inflight, scarcity of charging stations on the ground need not be a limitation to the deployment of hybrid-electric aircraft.

Image credit: Eco Caravan, Ampaire

11

Ampaire, Nov. 18, 2022
Ampaire, July 20, 2022

17

18

Heart – where SAF meets electric –the next step?
Sweden’s Heart Aerospace already has bigger aircraft
firmly in its sights. It’s developing the ES-30 and alreadyhas an order for 30 units from Air Canada. The 30-seater
ES-30 is scheduled for service entry by 2028. Rather
than an all-electric layout, it will adopt a reserve-hybrid
approach, using two SAF-powered turbo-generators
to produce electricity for the propulsion motors. Thissystem secures reserve energy and can complement theelectrical power provided by the batteries.
Air Canada sees the ES-30 as key to its efforts towards
net zero emissions. United Airlines, regional partner
Mesa Airlines, Braathens Regional Airlines, Icelandair, SAS
and Sounds Air may follow Air Canada with their orders.
Heart may already have commitments for more than
100 ES-30s. By moving to hybrid-electric, airlines
can offer cleaner and greener flying, but not yet
emissions free.

Image credit: Heart ES-30, Heart Aerospace

12Full-electric starting small too
Like Ampaire, Eviation is starting small with Alice, its full-electric nine-seater. A demonstrator aircraft has already flown
for eight minutes at 3,500 feet as part of a certification process, which Eviation hopes to complete by 2025. It’s marketingthe lithium-ion battery-powered Alice as a commuter aircraft with a 440nm (815 km) range and cruise speed of 220kt (407kph). The batteries should provide one flight hour for every 30 minutes of charging.
By December 2022, Eviation had received orders and letters of intent for 185 aircraft from companies including DHL
Express, Cape Air, Evia Aero and Miami-based charter airline GlobalX. Air New Zealand has become the first national airline
to show an interest in the Alice. Regional flights make up a sizeable part of its operation. As short-haul air travel comesunder increasing pressure to reduce its emissions, the Alice enables Air New Zealand to offer passengers a sustainable
alternative.
Eviation expects to Alice to be available from 2027, but much depends on advances in battery technology towards
improved energy density, securing commercial viability for electric aircraft. Right now, companies like Eviation must
develop their own batteries. Electric flight development could really take off once generic battery makers turn theirattention to the needs of aviation.

Image credit: Alice, Eviation

13

Electric airlines – a new
business model
Much in the same way as the Internet inspired
and facilitated the low-cost airline revolution in
the 1990s, the prospect of commercially-viable
electric aircraft is inspiring a new airline businessmodel: built from the ground up based purely
on e-powered flight. Netherlands-based Fly
With Lucy is pioneering the model, with plans tocommence operations from Eindhoven in 2025,
initially relying solely on a fleet of five-seater
e-aircraft with a range of around 250 km. Using
the Lucy app, travelers
would travel to an
uncongested
regional airport
by electric vehicle,
before transferring
to an electric
aircraft for the flight to their finaldestination. The start-up has alreadyattracted interest and investment
from low-cost carrier Transavia,
which is interested in the prospect of
Image credit:
Fly With Lucy taking over some of
Flywithlucy.com
its current routes by 2030.

Hydrogen, the third way to sustainable flying
At the same time as pursuing SAF and electric-powered flight, aviation is already exploring a third cleaner power source, hydrogen, which can be used either in batteries or as a fuel directly“burned” by aircraft engines. Hydrogen-based fuel cells are already in development. ZeroAvia is aiming for 2024 certification of a partially electric-powered engine suitable for small utility
aircraft, such as the Cessna Caravan. It’s also working on a powertrain for regional aircraft with 40-80 seats, targeting service entry in 2026. But the weight and power constraints of current
battery technology will limit its application in aviation beyond small aircraft.
In an industry first, aeroengine maker Rolls-Royce has recently ground tested a conventional aircraft engine powered by hydrogen.19 As hydrogen contains no carbon (unlike kerosene), when
it burns, no CO2 is produced. The development is supported by EasyJet, which believes hydrogen power offers the best way for short-haul aviation to reduce emissions. It regards
hydrogen as a better alternative to electric batteries. It will be some years before a battery possesses the “fuel density” needed to power even narrowbody airliners. Right now, batteries are
simply too heavy to power larger aircraft.
Hydrogen-powered commercial flight is still some years away, however. Testing is still in its early stages, as aviation explores the zero carbon possibilities of hydrogen.20 Rolls-Royce has
shown existing engines can run on hydrogen, but safely powering a passenger aircraft will require an entirely new engine and a redesigned aircraft. And then there’s the infrastructureneeded to supply the fuel. In liquid form, hydrogen takes up four times the space of kerosene and needs to be stored at -253oC. It also needs to be turned back into gas before being burned.
Some big technological issues still need to be resolved.

Image credit: ZeroAvia

14

19

BBC, Nov. 28, 2022
BTN Europe, Nov. 28, 2022

20

And then there’s producing the fuel itself. Green hydrogen can be a very clean fuel, if renewable wind energy or tidal power is used to split water intohydrogen and oxygen. However, most industrial hydrogen produced today requires a considerable amount of energy, often provided by burning fossil
fuels, releasing a considerable amount of CO2. The sustainable solution would be green hydrogen produced at scale.
In its approach to hydrogen, Airbus is not confining itself to its ZEROe demonstrator aircraft, which will be fueled by hydrogen. It’s also developinghydrogen fuel cells to provide electric propulsion. Not only is this an alternative to a hydrogen-burning gas turbine, but it could also be integrated
with hydrogen-powered engines in a hybrid-electric format. Like Rolls-Royce, it’s progressed to ground trials and hopes to have a fuel cell propulsion
system certified by 2035.
Like most new aviation technologies, hydrogen-powered aircraft will require new regulations covering aircraft certification and operation, hydrogenproduction, and distribution infrastructure. And like SAF, supply could be an issue. Enough green hydrogen must be available at the right quantity,right place and right price.

Image credit: ZEROe: Fuel Cell Engine Demonstrator, Airbus

15

Aviation is already preparing for hydrogen

Tips for reducing air travel emissions

Airlines know they cannot afford to ignore hydrogen’s potential. American Airlines has
joined JetBlue Airways in investing in Universal Hydrogen, which is developing a modularhydrogen capsule system as an alternative fuel source for aircraft. The capsules aredesigned to be loaded on aircraft like cargo and will be distributed via existing transport
networks rather than via an entirely new fuel distribution infrastructure. American could
use the capsules to fuel hydrogen-electric powered engines produced by ZeroAvia.

The Global Analytics for Travel Emissions (GATE4)
methodology developed by corporate travel
consultancy Advito provides a useful checklist to
help travelers and travel managers tackle the carbon
emissions from air travel.

Seizing on travelers’ desire for sustainable solutions, start-up carrier Connect Airlines aims
to be at the leading edge of smarter, greener travel. To meet its ambition to be the firstzero emission airline in the U.S. by 2025, it’s working with Universal Hydrogen to retrofit
75 ATR 72-600 turboprop aircraft with hydrogen electric conversion kits. First deliveries
are expected from 2025.21
Airports are also preparing for hydrogen, even though it might not be until the mid-2030s
that aircraft start using the fuel. In the U.K., Manchester Airport has unveiled plans to
install a direct hydrogen fuel pipeline, so it can use it at scale as soon as it’s available.22

Hydrogen can only be part of the solution
IATA acknowledges that hydrogen-powered aircraft are a part of aviation’s plan to achieve
net zero emissions by 2050, But, like electric power, hydrogen’s application is
likely to be limited to short-haul routes.23 Project NAPKIN (New Aviation Propulsion
Knowledge and Innovation Network), a consortium which includes London’s Heathrow
and City airports, GKN Aerospace and Rolls-Royce, believes hydrogen-poweredintercontinental flights might be possible by 2040. But even if confined to smalland medium-sized commercial aircraft, it could take decades for the world’s fleet andinfrastructure to accommodate hydrogen.

Future Travel Experience, Oct. 2022
Manchester Airport Group, Nov. 29, 2022
23
IATA, June 21, 2022
21

16

22

•
•
•
•

•

Aircraft type: Significant differences exist in emissions
between aircraft types. New generation aircraft may also
be more fuel efficient than older types.
Cabin class: Premium class seats are typically heavier
and take up more space, increasing unit emissions perpassenger.
Cabin configuration: These can vary even for the sameaircraft type within a given airline.
Airline load factor: An airline’s success in filling available
capacity will affect each passenger’s share of emissions
from a flight’s underlying fuel use. Per passenger emissions
will be higher on empty flights.
Flight distance: Flying on direct services should generally
mean shorter flights, while reducing the extra fuel use
associated with takeoffs and landings which would result
from multi-sector itineraries.

Armed with a strong methodology and guided by Advito’s
consultants, travel managers can help employees travel betterand achieve CO2 reductions for their organizations. To findout how GATE4 can help tackle carbon emissions for businesstravel, visit the dedicated GATE 4 page or contact Advito here.

How carbon offsetting can contribute to moresustainable travel
We are living in a decisive decade in which climate action and taking responsibility
is crucial to limit our impact. Climate change is a global problem that requires
dedicated effort and actionable solutions. By investing in carbon offsets,companies can take responsibility for emissions they cannot reduce or avoid (yet).
Carbon offsetting can mitigate corporate footprints through the purchase ofcarbon credits. One carbon credit represents a reduction or removal of one ton of
CO2 via offsetting projects, which range from forestry projects to installing efficientcooking stoves. Offsetting is accepted as a legitimate mechanism to achieve thegoals of the Paris Agreement.
Climate Neutral Group (CNG), part of Anthesis, is a partnerin the BCD Travel marketplace, offering solutions foroffsetting your organization’s business travel, scope 3
emissions with CO2 credits. The CO2 credits comply withthe highest international standards, ensuring positive
co-benefits for nature, biodiversity and people andtherefore contribute to the UN’s sustainable development
goals. Find out more about sustainability solutions at
solutionsource.bcdtravel.com.

24

17

25

Future Travel Experience, Sept. 2022
Conserve Energy Future

Airlines aren’t standing still on sustainable flying
Airlines aren’t simply waiting around for the arrival of more efficient ways to power
aircraft. They know that they need to act now to reduce their emissions and there’s morethat they can do. Airlines are making changes to the way they operate to reduce
their environmental impact. EasyJet, for example, is investing in descent profile
optimization (DPO) and continuous descent approach (CDA) technology. By allowing
aircraft to descend from cruise altitude using only idle engine thrust and enabling them tospend more time at cruise level, DPO and CDA should deliver permanent fuel savings of
1%, as well as cutting noise. Once installed across its fleet of more than 300 Airbus A320
family aircraft, the technology will realize annual CO2 savings of 88,600 tonnes.24
While pursuing a longer term goal of zero carbon emission flying, this is one example ofan airline focusing on day-to-day reductions in its emissions. Fleet renewal is anotherapproach. While it’s not inspired purely by the pursuit of sustainability, introducing
newer aircraft, such as the Airbus A320neo family, can offer fuel efficiencies
of around 15% compared to the models they replace. Other operational adjustmentsthat airlines are making include single engine taxiing on arrival and departure, reducing
the use of auxiliary power units (APUs) when on the ground, advanced weather warnings
to improve navigational performance and engine washing to remove debris and enhance
performance.
A number of airlines, including Air Canada, British Airways and Delta Air Lines,
offer customers the chance to participate in carbon offset programs.25 Thesecan be integrated into the booking process, so that travelers are presented
with estimates of their journeys’ emissions and an opportunity to voluntarily
offset them. The quality of the programs does vary, however, and carbon
offsetting does not present a long-term solution for reducing the emissions
from flying.

Image credit: Photo by Alexandre Doumenjou,
A320neo, Airbus

Rail has a role to play
An alternative to some flights
For many journeys, air isn’t always the only way to travel. For shorter trips, rail is being increasingly touted as analternative, more sustainable way to travel. High-speed rail services are already well-established in a number of markets,particularly in China, Japan and across Europe, providing the speed and comfort that business travelers look for. They’remost attractive for travel between city centers, and may often offer faster total journey times than air, particularly once
check-in times and travel to/from airports are added in.
As well as saving time for some journeys, switching from air to rail can certainly help reduce a trip’s carbon
footprint. A study by the Intergenerational Foundation (IF) think tank concluded that banning flights on mainland U.K.
routes, where a rail alternative of under 4.5 hours was available, could cut emissions from domestic aviation by 53%.26
There are downsides to switching, however. As rail typically entails traveling between city centers, two-thirds of travelers
will have longer journey times compared to flying. On average, journeys would be 14 minutes longer, and prices would becomparable if booked in advance. So a change of behavior would be required both pre- and during the trip. But it seems to
be a small price to pay for the environmental benefit.
To encourage flyers to make the switch, the French government intends to ban short-haul flights, where a train or bus
alternative of 2.5 hours or less is available. This was due to come into effect from April 2022 but was held up by a legal
challenge. The 2.5 hour threshold falls short of the four hour rail journey environmental campaigners had wanted.27 As themap shows, a number of key travel markets fall within the scope of the ban. As the ban approaches, few, if any of thesemarkets, have yet to lose their air services. In any case, flights will continue from Paris to Bordeaux, Lyon and Nantes byvirtue of an exemption granted for connecting flights from Charles de Gaulle airport. But Air France’s 16 weekly flights
between Marseille and Lyon should be vulnerable, as this is a journey that a TGV INOUI rail service takes one hour 40
minutes to complete.28 The sentiment of the French government is clearly encouraging, but will the execution fall shortof expectation?

Engineering & Technology, Oct. 12, 2022
Railway Technology, Sept. 27, 2022
28
Trainline, Trains from Marseille to Lyon, Nov. 24, 2022
26

27

18

Rail alternatives to French domestic flights

Paris

Nantes2h 10mLyon
2h 4m
Marseille-Lyon
1h 40mBordeaux
2h 14mToulouse
4h 6m

Marseille
3h 7m

In scope of flight ban
Unaffected by flight ban

Nice
5h 41mA greener alternative to flying
Rail’s green credentials are certainly something that Eurostar uses to promote its
services. By traveling on its London-Paris service, a passenger will use 93% less CO2
than flying.29 That means a passenger’s carbon footprint from a single flight can be
the same as making 13 Eurostar journeys. 30 Unlike aircraft, all of Eurostar’s trains areelectric-powered, and when operating in the Netherlands, this electricity is generated
entirely by wind power. All trains operating in the U.K., France and Belgium should run
on renewable energy by 2030, giving Eurostar a compelling case to present itself as thesustainable option.
The European Commission (EC) agrees with Eurostar. It considers rail to be the cleanest
and most efficient means of transportation, but it acknowledges that it still faces a
number of hurdles. 31 These include the complexities around ticketing and booking rail
travel, both for domestic and international trips. The latter is particularly fragmented,
constraining passenger engagement with cross-border high-speed rail travel within
the European Union. This may be slowly changing. Following their merger in May 2022,
high-speed rail operators Eurostar and Thalys have offered their first joint promotion,
enabling Eurostar passengers to connect at Brussels onto Thalys’ European services
to destinations including Cologne in Germany. 32 A first step towards a consolidated
integrated offering perhaps.

Eurostar, Reasons to travel with Eurostar
Eurostar, The Greener Way to go
31
BTN Europe, Nov. 8, 2022
32
Travelmole, Nov. 9, 2022
29

30

19

Airlines are taking note of rail
Airlines are taking note of rail as a means of extending
their reach to markets where it makes little sense to fly.
Through its Air+Rail train connection program, Delta Air
Lines has been working with leading rail operators in
European countries to provide onward train journeys via
stations located at airports. For example, passengers
flying into Zurich can now connect onto rail services
operated by SBB to seven Swiss cities, including Bernand Lausanne. As well as offering travelers convenientconnections to their final destinations, Delta can help
them lower their emissions through reduced road andshort-haul air travel.

20

33
34

Civil Service World, Oct. 28, 2022
BCD Travel survey of 101 travel buyers, April 6-26, 2021

As an alternative, rail’s potential islimitedRail can clearly make a genuine claim to be a moresustainable choice for travelers making short journeys.
But the advent of electrically powered eVTOL (electric
vertical take-off and landing) aircraft and the eventual
arrival of electric and hydrogen-powered aircraft could tip
the balance back in air’s favor. And unlike an eVTOL,
which promises door-to-door journeys, trains can only
take travelers as far as the nearest station.
Arguably train companies lack the capacity toaccommodate a mass transfer of travelers from airlines.
And they lack the flexibility to ramp up capacity to meet
any surge in demand. There’s only so many train services
that can physically and safely be accommodated byexisting rail infrastructure. Expanding rail networks isslow and costly – the HS2 high-speed rail development
between London and Manchester in the U.K. has a budgetof £44.6 billion and is not expected to be operational until
2033.33 And of course there’s a big environmental price tobe paid for such an immense construction project.

Taking the train instead of theplane has yet to really resonate
with travel managers. It’s low
down the list of sustainable
travel options presented tobusiness travelers, with just
one-third of programs offeringrail as an alternative to flying. 34

Summary
Air travel must become more sustainable
Aviation’s need to reduce its environmental impact is widely accepted. There can be no doubt thatthe future of air travel will be built around sustainable innovation. Sustainable air travel will evolvein phases, and travel managers will need to familiarize themselves with the costs, benefits andwider implications of each one. Sustainable flight might start with SAF, but its ultimate destination
seems likely to lie with electric or hydrogen-powered flight. But it will take some years foraviation to implement the most critical innovations at scale.

21

Aviation’s power struggle
If only it were as simple as innovating towards sustainable air travel. Transitioning to
SAF-powered flight is unlikely to be the solution given the clear indications of insufficient
supply. And it’ll be some years before alternative forms of power, such as electric andhydrogen, are available at scale, both in terms of aircraft size and numbers. This cast
doubts on aviation’s ability to make real progress towards net-zero targets, even by 2050.
As it embraces new forms of power, aviation may come into conflict with others’ demands
for clean energy. According to Advito’s Sustainability Practice Lead, Julien Etchanchu, inorder to convert to electric power all flights currently departing from Paris Charles deGaulle airport, France would need to build up to seven new nuclear power plants. Asidefrom the significant investment required, how acceptable will it be to divert much-needed
clean energy simply for the sake of travel?
Faced with a shortfall of sustainable energy supply, in order to meet its emissions targets,
aviation may have to limit future demand for air travel. This could be achieved throughhigher prices, reducing the number of passengers for whom travel is affordable. Failing this,airlines would instead have to limit passenger numbers, which could also result in higher
fares. Faced with higher costs, companies may need to be more selective when allowing
business trips. And this will mean travel managers clearly defining what constitutes
necessary travel. Crucial tasks will include measuring the value of a trip, demonstrating thequality of its outcome, and proving to internal stakeholders that it’s worthwhile.

In the meantime, both travelers and travel
managers will need to do what they can tomitigate the environmental impact of theirtravel programs, while ensuring they are also
cost effective.
22“

Everyone has a role to play in sustainable air travel
Sustainable business travel goes hand in hand with sustainable aviation. However,addressing the carbon emissions generated by aviation, particularly in light ofthe sector’s forecast growth, remains one of the greatest challenges in the quest
for net-zero. While the high-level commitments by IATA and ICAO are a great step
forward, it is clear that achieving the decarbonization pathways they set out isfar from given. It will take commitment and collaboration across the industry
to generate the demand for and create the supply of SAF to the levels required,and significant investment to bring the alternative technologies to market.
Government support, subsidies and incentives will be critical to driving progress
and facilitating change. In the meantime, however, each business traveler canplay a part in the future sustainability of aviation. We can all critically evaluate theneed for each flight taken and look for sustainable options such as flying on new
aircraft, selecting direct routes or traveling in the economy cabin. The future ofaviation lies in purposeful travel that maximizes value and minimizes impact. At
BCD Travel and Advito, our global business travel consultancy, we have a wealth oftools to help achieve this.

Olivia Ruggles-Brise
Vice President, Sustainability

Share your thoughts
Do you have questions or comments regarding this report?
Please email Mike Eggleton to share your thoughts.

Mike Eggleton
Director, Research & Intelligence

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