Sustainable Finance in the Aviation Industry
Chapter from the book:
Alıcı,
A.
(ed.)
2025.
Financial Sustainability: Theoretical Approaches and Strategic Applications.
Synopsis
This section discusses the role of sustainable finance in the aviation industry, its conceptual framework, and areas of application. The aviation sector is at the center of environmental sustainability debates due to its high carbon emissions and energy-intensive structure; this situation necessitates innovative financing mechanisms for the sector to fulfill its environmental obligations. The study first explains the theoretical foundations of sustainable finance and the regulatory frameworks developing on a global scale; it then focuses on the use of financial instruments such as green bonds, transition bonds, sustainability-linked loans, and green securitization in the aviation industry. Examples from institutions such as Mexico City Airport, Etihad Airways, British Airways, Delta Airlines, Singapore Airlines, Pegasus Airlines, and Turkish Airlines, particularly since 2016, demonstrate that the sector has embraced financial sustainability tools as a strategic element. These tools enable investments in sustainable aviation fuel (SAF), the addition of new-generation fuel-efficient aircraft to fleets, energy-efficient airport infrastructure, and the necessary financing for carbon-neutral goals. As a result, sustainable finance is regarded as a fundamental mechanism that balances environmental responsibility with economic growth in the aviation industry and shapes the sector's future.
