The green aviation shines as hope in the dynamic world of aviation. The industry combines aspirations with eco-consciousness, ranging from innovative biofuels to electric aircraft. Offsetting, particularly carbon emissions reduction illustrates the commitment to a greener footprint. Based on stakeholder and shareholder theories, this study investigates the impact of Carbon dioxide (CO2) emissions reduction on firm performance of Asian aviation firms during 7 years from 2017 to 2023 by balanced panel data. Furthermore, the paper also evaluates the moderation effect of financial intermediation factor that affects the correlation between carbon footprint and firm performance. The results show that carbon emissions reduction enhances firm performance and financial intermediation positively moderates the correlation between carbon emissions reduction and firm performance. This study aids aviation shareholders and customers in gaining a clearer understanding of the environmentally friendly initiatives undertaken by aviation companies, offering promising prospects for advancing towards a more sustainable future for the planet.