Soaring Fuel Costs Hit Profit at British Airways Owner IAG
The British Airways owner said a 30.4% jump in jet fuel costs and Nats outages cut profits, while annual fuel spending nears €8.9 billion.
- International Airlines Group reported a sharp decline in quarterly earnings for the three months to September 30, citing surging fuel costs and Air Traffic Control disruptions.
- The conflict in Iran drove fuel prices sharply higher, while a technical fault at National Air Traffic Services on September 8 forced cancellation of more than 2,000 flights.
- Pre-Tax profits fell 12.9% to €1.63 billion, while operating profits slumped 15.9% to €1.73 billion; a 4.5% revenue rise failed to offset the 30.4% surge in jet fuel costs.
- Annual fuel costs are expected to reach €8.9 billion for the financial year, though IAG noted cost-saving initiatives are helping mitigate disruption and non-fuel expense impacts.
- IAG chief executive Luis Gallego remained optimistic, stating the outlook for the rest of the year and start of next year "is positive" despite the current headwinds.
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13 Articles
Soaring fuel costs hit profit at British Airways owner IAG
British Airways owner IAG has taken a hit to its profit due to “very high” jet fuel prices, which industry bosses have warned could force some airlines into collapse next year. The London-listed firm, which also owns airlines Vueling and Aer Lingus, saw its pre-tax profit dip 16 per cent to €3bn in the nine [...]
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IAG Reduces Its Profit by 16.2% Until September Due to Fuel Prices and Plans to Cut Capacity by 2026
IAG obtained a net profit of 2,264 million euros between January and September 2026, 16.2% less than in the same period of the previous year. Iberia’s own group, British Airways, Vueling, Aer Lingus and Level attributes the regression to fuel prices and operational disruptions resulting from the military conflict in the Middle East, as reported to the National Securities Market Commission (CNMV) on Friday.
The group reduces its profit after taxes to 2,264 million in the first nine months after firing fuel costs.
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