British Airways owner sees profits hit by soaring jet fuel costs
LONDON: The owner of British Airways has revealed a sharp drop in quarterly earnings on surging fuel prices due to the Iran war and warned its annual fuel bill is set to jump to nearly €9 billion (US$10 billion), reported PA Media/dpa.
The owner of British Airways, International Airlines Group (IAG), has announced a significant decline in quarterly earnings due to soaring jet fuel costs resulting from the Iran war. Pre-tax profits dropped by 12.9% to €1.63 billion in the three months leading up to September 30, while operating profits fell by 15.9% to €1.73 billion. Despite a 4.5% revenue increase, it was not sufficient to counterbalance the dramatic 30.4% surge in jet fuel expenses.
The rising fuel costs, alongside disruptions from Air Traffic Control outages, have dealt a heavy blow to the airline group. A significant incident at National Air Traffic Services (NATS) on September 8 resulted in over 2,000 flight cancellations, affecting hundreds of thousands of passengers.
IAG anticipates that its total fuel costs for the financial year will soar to €8.9 billion, even with price-fixing measures in place. The group's chief executive, Luis Gallego, remains cautiously optimistic about the future. He stated, "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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