Our thinking

British Airways offers cheap ‘green’ flights

6 June, 2025

There are times when sustainable choices cost more. From organic apples to electric cars, “doing the right thing” can sometimes come with a higher price tag. But British Airways is flipping that narrative by offering ‘green flights’ that pollute less and cost less too. 

Thanks to years of investment in sustainable aviation fuel (SAF), BA now says it can undercut competitors on both emissions and ticket prices. It’s a strategic win. While most airlines are still calculating how to absorb rising costs from net-zero fuel quotas, BA is reaping the benefits of a first mover and gaining serious commercial advantage. 

Other airlines like Virgin Atlantic and Ryanair have warned customers that net-zero SAF quotas will lead to higher fares, since the price of SAF remains far above that of traditional kerosene. But BA’s parent company, IAG, took a different approach by locking in long-term “take or pay” contracts of up to 14 years. The result? They’re reportedly paying less than 60% of the current market rate for SAF. These contracts not only shield BA from volatility but also give green fuel suppliers the revenue certainty needed to scale up, creating a ripple effect of investment across the supply chain. 

Now we’re aware SAF isn’t a perfect solution, as questions remain about its scalability and long-term environmental footprint. But what this move does show is that early investment and a long-term vision can turn sustainability into a source of competitive strength. 

We hope this model inspires other organisations to look within their own value chains for investments that build resilience, unlock value and get ahead of what’s coming. 

By Sirisha Venkatesh