ABSTRACT Air transport is one of the fastest‐growing sources of greenhouse gas emissions, yet it remains one of the most difficult sectors to decarbonize. The sector's climate impact is amplified by two factors: the steady rise in passenger demand and the absence of commercially viable low‐carbon technologies for long‐haul flights. At the same time, international regulation is fragmented, offering inconsistent incentives for airlines to reduce emissions. This study examines why some airlines perform better than others in reducing their carbon emissions. We analyze how company strategies interact with national and regional regulatory contexts. Using qualitative comparative analysis (QCA), we study a sample of 34 international airlines. Our contributions are threefold. First, stringent institutional pressures can act as country‐specific advantages to push higher carbon performance. Second, institutional complexity can lead to higher carbon performance through possible compensation effects. Third, the ability of multinational enterprises to leverage such country‐specific advantages depends on firm‐specific conditions.
Juntunen et al. (Thu,) studied this question.