Qantas has announced plans for its first commercial flight using the equivalent of cooking oil. The bio-fuel flight, scheduled for early next year, is the first of its kind in Australia.

The airline has signed agreements with two leading manufacturers of the sustainable aircraft fuel.

“We want the flight to be an inspiration, a preview of a sustainable future for Australian aviation,” CEO Alan Joyce told an aviation conference in Brisbane yesterday.

In an address to the Australian Airports Association Conference, Mr Joyce said Qantas is improving fuel efficiency 1.5% a year through a strategy that includes fleet renewal, new technology and fuel optimisation.

"While these initiatives can achieve significant improvements, only the production of sustainable aviation fuel on a commercial basis can deliver a generational step in emissions reduction", he said.