Southwest's Sustainable Fuel Push: Deal With Valero Set To Fuel Chicago Midway Operations

Southwest Airlines Company (NYSE:LUV) shares are trading lower on Thursday. The company disclosed a sustainable aviation fuel (SAF) supply agreement with a subsidiary of Valero Energy Corporation (NYSE:VLO).

This two-year agreement aims to deliver sustainable aviation fuel to Chicago Midway International Airport (MDW) and marks the state’s largest announced SAF supply agreement.

As per the deal, Southwest Airlines will purchase a minimum of 3.6 million gallons of neat SAF—approximately 12 million gallons when blended—for its operations starting as early as the fourth quarter of 2024.

The airline also has the option to acquire up to 25 million gallons of neat SAF (around 84 million gallons blended) during the agreement’s ...

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