By Islam El-Sakka
International Airlines Group (IAG), the owner of British Airways, reported a 12.9% drop in pre-tax profits to €1.63 billion (£1.33 billion) for the three months ended September 30, as soaring jet fuel costs linked to the Iran war eroded earnings.
Fuel costs and disruption hit earnings
Revenue rose 4.5% but could not offset a 30.4% jump in fuel expenses, while an air traffic control outage on September 8 forced the cancellation of more than 2,000 flights. Operating profit fell 15.9% to €1.73 billion (£1.42 billion).
Full-year fuel bill seen near €9 billion
IAG expects total fuel costs to reach €8.9 billion (£7.28 billion) for the financial year, even with hedging measures in place.
Chief executive sees positive outlook
Chief executive Luis Gallego said the group’s cost-saving actions meant the outlook for the rest of the year and the start of next year was positive.
Separately, British Airways resumed passenger flights between London Heathrow and Beijing for the first time in more than three years after suspending the route during the coronavirus pandemic.
