United CEO announces his airline is going to cut greenhouse emissions by 50% and power its jets with biofuels

• United Airlines CEO Oscar Munoz affirmed his company's commitment to reduce greenhouse emissions by exploring sustainable sources of fuel in an op-ed on Business Insider.
• "Today, United Airlines became the first U.S. airline to make a public commitment to reduce our own greenhouse gas emissions - 50 percent by the year 2050," Munoz said.
• Munoz also announced that United will operate the longest transatlantic biofuel flight to date, from their hub in San Francisco to Zurich, Switzerland.
• United's CEO says biofuels are not only better for the environment, but they are also good the airline's finances.

As an airline CEO, there are two uncertainties I want to hedge against to better serve our customers: weather and fuel costs.

While we can't guarantee clear skies, United can help make them cleaner by using less fossil fuel. Reducing our dependence on oil is good for business too, because fuel is our second largest and most unpredictable expense.

To advance both those goals, today United Airlines became the first U.S. airline to make a public commitment to reduce our own greenhouse gas emissions - 50 percent by the year 2050 - furthering our long-standing goal to be the world's most environmentally conscious airline.

Achieving this goal would eliminate 21 million metric tons of CO2 in the atmosphere per year, or the equivalent of taking 4.5 million cars off the road; that's all the cars in Los Angeles and New York City combined.

To celebrate this historic commitment, tomorrow we will mark another industry first as we operate the longest transatlantic biofuel flight to date, from our hub in San Francisco to Zurich.

That United is the first U.S. carrier to take this ambitious step makes us proud, to be sure; but it is a distinction we look forward to sharing as the rest of the industry catches up and makes similar commitments to sustainability.

If they do, I'm sure they will learn the same valuable lesson as United: cutting emissions and doubling down on sustainable aviation fuel is the surest way to control cost and help boost profits, which allows for greater investment in our product and customer experience.

The financial case for sustainability is clear:

The price of oil went up by nearly 50 percent in the past year, and price are expected to continue to rise. Fuel costs us more than $15,000 every minute. In fact, we spend more on fuel than ground operations, facilities and landing fees - combined. So, when investors and analysts demand to know how we intend to control fuel costs and increase profits while keeping ticket prices low, our sustainability advantage becomes crucial.

Regardless of whether oil prices rise or fall, the inherent volatility and environmental impact of fossil fuels exert their own costs, to the bottom line, the customer and the planet.

The ultimate hedge against those costs is to transition to alternative and renewable sources of energy.

We believe there is no point in setting challenging and ambitious goals without also taking tangible steps towards achieving them, especially when it comes to securing the health of our communities and our planet.

That's the reason we invest over $2 billion per year in new, more fuel-efficient aircraft, with each new aircraft reducing emissions 15 to 20 percent compared to the prior generation.

We recently retired the costly, gas-guzzling Boeing 747, replacing it with more fuel-efficient, longer-range aircraft. And to service those new aircraft, we are already one-third of the way to converting our ground fleet to electric power.

That's why United made the largest sustainable aviation fuel purchase agreement in the airline industry with Fulcrum BioEnergy, a firm that's pioneering the technology to literally turn household trash into sustainable aviation fuel. This fuel is at a cost-competitive price, compatible with our existing aircraft, and - most importantly - cleaner.

The Zurich flight tomorrow will use renewable jet fuel supplied to us through our partnership with World Energy, a California-based refinery that converts feedstocks into low-carbon biofuel that is both price competitive with traditional petroleum-based fuel, while also cutting CO2 emissions by over 60 percent on a life-cycle basis.

Since 2016, United has purchased more biofuel from World Energy in a single agreement than any other airline in history.

Today, United is responsible for more than 50 percent of the airline industry's commitments to biofuel.

Our efforts to be the greenest airline in the industry is about the future - of our business and our skies.

It's about proving a successful airline - like any company - is one that's profitable and principled.

When set up properly, markets are supposed to incentivize and reward companies that make the right and responsible choices. That's the case when it comes to sustainability: the market incentives and the moral imperatives align.