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.
23 Articles
23 Articles
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%.
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 [...]
Coverage Details
Bias Distribution
- 54% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
