Alaska Airlines Announces Investment in Green Aircraft Startup Developer JetZero

(Long Beach, California & SeaTac, Washington) Alaska Airlines (NYSE: ALK) announced today an investment in aviation startup JetZero, which is designing and building a new type of fuel-efficient, Blended Wing Body (BWB) aircraft that will initially provide up to 50% less fuel and burn and lower emissions compared to current tube-and-wing models.

Rendering of an Alaska Airlines’ JetZero Blended Wing Body (BWB) aircraft courtesy of Alaska Airlines.

Alaska Airlines also disclosed that it was the first airline to back JetZero when it made a previously undisclosed initial investment in the company in 2023 as part of JetZero’s Series A (after JetZero emerged from stealth mode).

JetZero intends to launch its BWB aircraft in 2030 with both 100% sustainable aviation fuel (SAF) compatibility and the internal volume to accommodate zero-carbon hydrogen, according to the company.

JetZero is developing the BWB under an initial $235 million U.S. Defense Innovation Unit (DIU) contract awarded in 2023, and its multi-role demonstrator program is aimed at a commercial airliner, initially for the mid-market sector, per Aviation Week.

A derivative of the aircraft could also be developed into a military transport/tanker for the U.S. Air Force; per Alaska Airlines, JetZero and its BWB program are in a unique position given the company’s close collaboration with the United States Air Force, NASA, and the FAA to develop and ultimately bring the company’s blended wing aircraft to market.

In January of 2024, JetZero announced that it was taking over about 275,000 square feet of space previously occupied by Gulfstream Aerospace at California’s Long Beach Airport (IATA: LGB, ICAO: KLGB, FAA LID: LGB).

Rendering of a JetZero Blended Wing Body (BWB) aircraft in flight courtesy of JetZero.

Per today’s press release from Alaska Airlines, Alaska’s investment reflects the airlines’ commitment to advance new technology that will benefit the future of aviation, including those that enable the airlines’ path to net zero carbon emissions.

While details of the investments are sparse and the exact investment amount is undisclosed, today’s press release explains that Alaska Airlines’ investment includes the option for future aircraft orders and was made through Alaska Star Ventures (ASV), Alaska’s investment arm whose purpose is to influence the future of the aviation industry.

Per Alaska, ASV is specifically focused on identifying and enabling the technologies that can help Alaska reach its goal of net zero carbon emissions by 2024 – this initiative represents one piece of Alaska Airlines’ and ASV’s comprehensive sustainability strategy, along with operational efficiency, fleet renewable, SAF, waste reduction and electrified aircraft.

“At Alaska, we are always looking for ways to innovate and shape the future of air travel for our guests, employees, and industry,” said Diana Birkett Rakow, senior vice president of public affairs and sustainability at Alaska Airlines. “We are proud to invest in JetZero’s development of this innovative next-generation aircraft, with a significant step-change in fuel efficiency. We and JetZero share a vision for more sustainable aviation, and we are excited to partner with them in creating that future.” 

JetZero CEO and co-founder Tom O’Leary commented: “The biggest challenge for airlines is lowering fuel burn and emissions. Of all the great new technologies in work, the BWB design delivers the biggest impact by far. Airlines will see immediate benefit in cost savings, dramatically lower emissions and improved customer experience, compared to airplanes flying today. We’re thrilled to welcome Alaska to our team of innovators, and our belief that this aircraft will reshape aviation.”