IAG Sees 2026 Capacity Slightly Down Year-on-Year
- On Friday, International Airlines Group , owner of British Airways and Aer Lingus, forecast annual capacity would be slightly lower than last year, citing ongoing flight disruptions in the Middle East stemming from the Iran war.
- Surging fuel costs drove a 12.9% drop in pre-tax profits to €1.63 billion in the three months to September 30, with annual fuel expenses expected to reach €8.9 billion.
- Operating profits slumped 15.9% to €1.73 billion during the quarter, as a technical fault at National Air Traffic Services on September 8 led to the cancellation of more than 2,000 flights.
- IAG chief executive Luis Gallego noted that 85% of expected forward bookings for the fourth quarter are secured, while the group is currently 45% hedged against fuel price volatilities for 2027.
- Cost-Saving initiatives are helping limit disruption impact, with Gallego stating, "As a result of the actions we are taking the outlook for the rest of the year, as well as the start of next year, is positive.
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British Airways owner faces £472m fuel bill surge as air traffic chaos costs airlines millions - London Business News
The owner of British Airways has warned of mounting financial pressure from soaring aviation fuel prices and widespread air traffic disruption, revealing that recent outages cost the airline group up… The post British Airways owner faces £472m fuel bill surge as air traffic chaos costs airlines millions appeared first on London Business News
British Airways parent profit drops on higher fuel costs
IAG, the owner of British Airways and Iberia, said Friday that its net profit dropped more than 12 percent in the third quarter on soaring fuel costs and flight disruptions caused by the Middle East conflict. The group said its overall flight capacity had been hit "by cancellations due to the conflict in the Middle East, together with aircraft availability linked to engine issues and disruption related to air traffic control disruption".
The energy crisis resulting from the war in Iran is making a dent in the results of the big European airlines. As it happened to Ryannair and Lufthansa, today the Iberia matrix (IAG) has presented results downwards and that are explained mainly by this increase of costs in the purchase of ... Continue reading "The Iran war weighs the results of the Iberia matrix: earns 16% less by the increase of fuel"
According to the information released today by the group, to which the companies Iberia, British Airways, Vueling, Aer Lingus and Level belong, the increase of revenues by 2.3%, to 25,808 million euros, driven by the rise of the prices of the tickets, was not enough to compensate for the impact of the disruptions and the high prices of the fuel.
Fuel cost increases to $8.9 billion by 2026, but the group maintains its objective of reaching a 12% operating margin and increases the dividend by 10.4%.
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