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The steep rise in kerosene prices due to the Iran war is causing problems for British Airways parent company IAG. For the full year, the International Airlines Group (IAG) now expects a fuel bill of €8.6 billion. The parent company of British Airways, Iberia, Vueling, Aer Lingus and Level continues to assume that it will offset around 60 percent of the higher fuel costs through revenue growth and cost savings.
In the second quarter, the rise in kerosene prices was reflected in IAG's business figures. The operating profit adjusted for special effects fell by 16 percent to €1.41 billion, while revenue remained almost at the previous year's level at €8.89 billion. The net profit fell by just under a third to €732 million.
Air France-KLM has cushioned the impact of rising fuel prices thanks to strong demand for premium tickets. Adjusted operating profit fell by a third to €484 million in the second quarter, but exceeded analysts' forecasts of €327 million. CEO Benjamin Smith said on Thursday that stable demand for premium travel, particularly in the Asian and North American markets, had contributed to this development.
Revenue rose by ten percent to €9.3 billion. Due to overall subdued demand, the airline lowered its capacity forecast to growth of two to three percent (previously three to five percent).
The aviation industry is currently suffering from high kerosene costs and the impact of the conflict in the Middle East. Air France-KLM now expects fuel costs of $8.9 billion for the full year 2026, almost two billion euros more than in the previous year.
Translated by urgent.news from Handelsblatt's report. Machine-written; read the original for the full account.
