British Airways has embarked on a groundbreaking venture by investing $3.5 billion in green fuel, positioning themselves to offer cheaper fares in comparison to competitors. The strategic move has resulted in a 40% discount to market prices for sustainable aviation fuel (SAF), allowing British Airways to potentially avoid passing the transitioning costs to customers. The parent company, IAG, has secured long-term contracts with suppliers at rates significantly below market prices, offering cost certainty and enabling suppliers to scale up their projects. By investing in SAF early, IAG anticipates a competitive edge over rivals and significant reductions in carbon emissions. SAF, which can cost up to seven times more than standard jet fuel, is produced through various methods like extracting bioethanol from waste materials or combining carbon dioxide with green hydrogen. While the industry remains skeptical about immediate fare reductions, the aim is to potentially pass on some savings to customers in the future. Additionally, the increasing SAF mandates each year are likely to benefit IAG by creating barriers for new airlines to enter the market, potentially leading to merger and acquisition opportunities.