10:20 AM EDT, 08/14/2025 (MT Newswires) -- (Updates with Southwest Airlines' ( LUV ) Response in the fourth and fifth paragraphs.)

Southwest Airlines ( LUV ) sold its renewable fuels unit Saffire Renewables to Conestoga Energy as the carrier scales back climate-related initiatives, Bloomberg reported Thursday.

The purchase from Southwest Airlines Renewable Ventures includes all intellectual property, related technologies, key leadership team members and a proposed pilot facility in Kansas to produce sustainable aviation fuel, the report said.

Financial terms of the deal were not disclosed.

Conestoga is well-positioned to advance Saffire Renewables' work on producing ultra-low carbon intensity ethanol at its Arkalon Energy facility in Kansas, a Southwest Airlines ( LUV ) spokesperson told MT Newswires.

Southwest ( LUV ) is encouraged by the progress of the technology, which could support the broader sustainable aviation fuel ecosystem and the industry's carbon reduction goals, the spokesperson added, noting that it helped develop Saffire's early-stage work before it moves toward commercialization.

Conestoga Energy did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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