British Airways’ parent company expects £1.7bn hit from higher fuel bill
- International Airlines Group, the parent company of British Airways, warned profits will be lower this year as it expects to spend about two billion euro more than planned on fuel amid the Iran oil crisis.
- Iran maintains a stranglehold on tankers passing through the Strait of Hormuz, leading to a surge in oil prices and concerns over jet fuel shortages affecting global aviation operations.
- Global aviation analytics company Cirium reported 13,005 flights planned for May were cancelled between April 10 and April 21, equivalent to 1.5%, while the company recorded a pre-tax profit of 422 million euro during the first quarter, a 76.6% increase.
- Luis Gallego, chief executive of International Airlines Group, said the firm is "managing the uncertainty" by "taking the necessary action on yields, costs and capacity" to mitigate fuel price pressures.
- Gallego stated the firm is "not currently seeing any jet fuel supply disruptions across our main hubs or markets" and remains "confident in fuel availability through the summer," underpinning business confidence despite headwinds.
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The holding company of IAG airlines, owner of Iberia, Vueling or British Airways, fired 77.3% of its operating profit in the first quarter compared to the same period of the previous year, up to 351 million euros, as it has published this Friday through the National Securities Market Commission (CNMV). For its part, the profit after taxes was 301 million euros until March, 71% more in annual terms. The group has been able to dodge the conflict i…
IAG, the parent company of British Airways and Spanish airline Iberia, said on Friday that the war in the Middle East would reduce its full-year profit despite a strong first quarter. “While the first quarter was not significantly affected by the conflict in the Middle East, we expect the war to have a more significant impact throughout the rest of the year as fuel prices start to rise,” IAG said in a financial statement, AFP reported. Lufthans…
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