British Airways parent says profit drops on higher fuel costs
Profit after tax fell to €1.23 billion in the July-September period compared with €1.4 billion for the third quarter of 2025.
IAG, the parent company of British Airways and Iberia, revealed on Friday that its net profit declined by over 12% in the third quarter, primarily due to soaring fuel costs and disruptions from the Middle East conflict. In the July-September period, profit after tax dropped to €1.23 billion (US$1.37 billion) from €1.4 billion in the same quarter of 2025.
Strong pricing was mitigated by reduced capacity, the effects of isolated disruption events, and notably, higher jet fuel prices, with fuel costs increasing by more than 30% in the quarter. Revenue grew by 4.5% to €9.74 billion. IAG CEO Luis Gallego stated that the company delivered a resilient quarter despite high jet fuel prices and several one-off disruption events.
The group cited cancellations due to the Middle East conflict, aircraft availability issues stemming from engine problems, and air traffic control disruptions, including a technical glitch in Britain's air traffic control service in September that caused significant chaos.
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- Soaring fuel costs hit profit at British Airways owner IAG cityam.com
- British Airways parent says profit drops on higher fuel costs freemalaysiatoday.com
