Qantas also has an interim target to reduce carbon emissions by 25 per cent by 2030, it said in an ASX listing on Thursday.

The airline has launched its Qantas Group Climate Action Plan and pledged to make sustainability a key pillar of decision-making across all areas of the business.

As part of the plan, Qantas has committed to using 10 percent sustainable aviation fuel (SAF) in the group’s fuel mix by 2030. and approximately 60 percent by 2050.

The airline is also committed to increasing its fuel efficiency by an average of 1.5 percent per year by 2030. by updating the aircraft fleet and using more efficient flight planning, while continuing to explore next-generation technologies, including hydrogen and battery power.

The company will also focus on achieving zero single-use plastics by 2027. and zero total waste to landfill by 2030, meaning every Qantas or Jetstar flight will use products in compostable or recyclable packaging.

The airline also pledged to continue building its offset program, particularly in key Australian projects.

“Aviation is a crucial industry, especially in a country the size of Australia. Having a clear plan to decarbonise Qantas and Jetstar so we can continue to provide these services for decades to come is absolutely key to our future,” said Qantas Group CEO Alan Joyce.

"We've had a net-zero emissions target for several years, so today's interim targets are about accelerating our progress and reducing emissions as fast as technology allows."

Mr Joyce revealed that Qantas is looking at new planes that burn an estimated 15 to 20 per cent less fuel, while already using sustainable aviation fuel on its London flights, which can cut emissions by up to 80 per cent.

"One of the benefits of setting these targets now is sending a clear signal that we are in the market for large quantities of sustainable jet fuel, for carbon offset projects and for products that can be recycled." We hope this will encourage more investment and create more momentum for the industry as a whole.”

Qantas also announced it was signing a memorandum of understanding with ANZ and INPEX for a major integrated reforestation and carbon farming project in Western Australia's Wheatbelt region, an area the size of Belgium in the state's south-west.

The project will see marginal farmland replanted with resilient, drought-tolerant native plant species, which aims to improve the environment and generate Australian carbon credits to help offset the future carbon footprints of the three companies. In the longer term, this would also create a potential source for sustainable jet fuel production from felled Mallee trees.

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Already an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.