GREEN AIR CORRIDOR

Azerbaijan's aviation sector has been developing quite rapidly in recent years, with the country's revenues from the transportation of cargo and passengers by air growing by 31.2% to almost ₼5 billion last year alone.

Azerbaijan Airlines (AZAL), which previously received substantial subsidies from the state budget, has achieved a net profit for the first time since 2022.

The global aviation sector recognises the merits of our own sector, as evidenced by the numerous awards received and the selection of Baku as the venue for several prestigious international industry forums.

One of these events was the International Air Transport Association (IATA) Aviation Energy Forum (AEF), which was held in the country's capital in mid-May.

Environmental agenda

The AEF provides a unique platform for discussing the energy challenges facing modern aviation. It also fosters global cooperation between air carriers, Sustainable Aviation Fuel (SAF) suppliers and other IATA strategic partners. The primary motivation behind the discussions was to establish partnerships towards aviation's objective of achieving zero CO2 emissions by 2050.

"Hosting such a significant forum in Baku is indicative of our country's growing strategic importance in the global aviation industry and energy transition, and confirms Azerbaijan's active involvement in shaping the aviation development agenda. Sustainable aviation fuels are recognised as a key enabler on the road to achieving zero CO2 emissions by 2050. AZAL is committed to supporting the decarbonisation of the aviation industry and will consistently develop its own sustainability agenda," said Samir Rzayev, President of Azerbaijan Airlines.

He confirmed that AZAL is developing a comprehensive ESG strategy and plan to achieve zero emissions, based on the principles of sustainable infrastructure, smart airports, renewable energy solutions, green finance and transparent emissions accounting. "Our approach is a systematic and data-driven process involving both macro- and meso-level analyses," he added.

AZAL has been publishing sustainability reports since 2021, and an expanded report for 2024, which will include a full emissions assessment, is currently being prepared. According to S.Rzayev, this step will further strengthen our commitment to responsible growth, environmental management, sustainable financing, energy transition and transparent ESG management.

AZAL is also exploring the potential of sustainable aviation fuels as a key decarbonisation tool. "Although the global SAF markets are in their infancy, we are already aligning our plans with the RefuelEU ("green" aircraft fuels) initiative and conducting feasibility studies to assess the potential for SAF production and supply in the region. Our objective is to ensure that the infrastructure and regulatory framework is prepared for the safe, scalable and certified integration of SAF when it becomes available," Rzayev explained.

At the same time, AZAL is committed to reducing carbon emissions. This is being achieved by electrifying ground operations, switching to renewable energy sources at airports and implementing digital solutions to improve energy efficiency. Special attention is paid to the preservation of biodiversity and the protection of ecosystems.

New agreements

In support of Rzayev's words, Hemant Mistri, one of the directors of IATA, reminded the audience that Azerbaijan, as one of the major oil and gas producers, had hosted the COP29 conference. This demonstrated the country's commitment to climate action and was an encouraging signal for the global climate agenda. "In this context, the country is considering harmonising its climate policies and standards with international norms. This could be a significant step towards the introduction of SAF (Sustainable Aviation Fuel) in the aviation sector," H. Mistri emphasised.

It should be noted that within the framework of AEF, AZAL and IATA signed an agreement to join the CO2 Connect programme. IATA's CO2 Connect calculator ensures consistent and accurate data on CO2 emissions per passenger, eliminating inconsistencies in emission calculations. These are based on real operational metrics, such as fuel consumption by specific aircraft types, and are provided directly by participating airlines according to recognised industry methodology. The platform improves the accuracy of information and enhances transparency in the sector. AZAL is the latest of over 60 airlines to provide data as part of CO2 Connect.

At the forum, AZAL also announced that it had joined the IATA Environmental Assessment Programme (IEnvA). This certification system is designed to independently assess the activities of aviation industry participants, including airlines, airports, cargo terminals, freight forwarding companies, maintenance providers, catering companies, and so on. By obtaining IEnvA certification, AZAL will be able to more accurately assess, monitor and optimise the environmental impact of its operational activities in a variety of ways. This will enable the airline to improve its environmental performance and implement a more systematic approach to sustainability.

Double passenger traffic

According to IATA Senior Economist Maja Marciniak, Azerbaijan's aviation market has not only surpassed the global average growth rate, but also outperformed the dynamics observed in Eastern European countries over the last decade. It is anticipated that there will be an additional 40 per cent growth over the next decade, primarily due to an increase in the number of passengers flying out of the country. "This is indicative of the elevated levels of activity in the sector, with an increase in the number of people travelling through Azerbaijan, visiting the country and utilising local airlines. A significant part of this growth has a direct positive impact on the financial performance of the sector," Marciniak added.

For your information, since 2022, the intensity of air traffic in the airspace of Azerbaijan has increased by more than 80%, and the number of transit flights has doubled.

According to Rzayev, last year AZAL operated flights to 63 destinations, which is almost double the 27 destinations that they operated to in 2022. Consequently, passenger traffic has doubled. Heydar Aliyev International Airport, which is AZAL's hub, served 7.5 million passengers last year. For the eighth time, the airport was recognised as the leading airport in Central Asia and CIS. In addition, for the third consecutive year, it was awarded the 'Best Airport Staff in Central Asia and CIS' accolade. In addition, it achieved Level 2 certification under the Airport Carbon Accreditation programme, which aims to reduce carbon emissions," said AZAL President.

Active participation in the global climate agenda by the aviation industry will therefore allow representatives of the Azerbaijani air fleet to strengthen their integration into the international aviation community and meet global goals to reduce the negative impact on the environment.