From The Economic Times · AFP · · 1m
British Airways Profit Drops on Fuel Costs
IAG's third-quarter profit falls 12% as jet fuel prices surge.
In brief
IAG's third-quarter profit falls 12% as jet fuel prices surge. IAG's net profit dropped 12% to 1.23 billion euros in Q3 2026 due to higher fuel costs and Middle East conflict disruptions. Originally reported by The Economic Times.
IAG Profit Drop
IAG reported a 12 percent net profit decline in Q3 2026 to 1.23 billion euros.
“Strong pricing was offset by lower capacity, the impact of one-off disruption events and in particular by higher jet fuel prices”
Fuel Costs Surge
Jet fuel prices rose over 30 percent in Q3 2026, with 2026 fuel costs expected near nine billion euros.
“The fuel bill for 2026... (is) going to be close to nine billion euros”
Middle East Disruptions
Flight cancellations and air traffic control issues linked to Middle East conflict disrupted operations.
“We hope that the situation ends soon, but we cannot do anything else than to follow the strict procedures that we have”
IAG Revenue Growth
IAG revenue rose 4.5 percent to 9.74 billion euros despite higher costs.
CEO Response
Luis Gallego called Q3 resilient despite high fuel prices and disruptions.
“The company had delivered a resilient quarter... despite the very high price of jet fuel and a number of one-off disruption events”
Future Outlook
IAG expects price volatility with competition and demand driving next year's fares.
“Prices are going to be determined by competition capacity and demand, and we are following that very carefully”
The main idea
IAG's net profit dropped 12% to 1.23 billion euros in Q3 2026 due to higher fuel costs and Middle East conflict disruptions.
