By Basant El-Faramawy
International Airlines Group (IAG), the owner of British Airways, has reported a decline in third-quarter profits due to soaring fuel costs and a bill of up to €30 million (£24.6 million) from the September 8 air traffic control outage.
Outage and fuel costs weigh on earnings
The National Air Traffic Services (NATS) incident affected 500 IAG flights and 85,000 customers, costing the group between €25 million and €30 million. Jet fuel costs jumped 30.4%, rising by €570 million (£471.9 million) in the quarter.
Profits fall despite revenue growth
Pre-tax profits fell 12.9% to €1.63 billion (£1.33 billion), while operating profits slumped 15.9% to €1.73 billion (£1.42 billion). Revenues rose 4.5% but were insufficient to offset higher costs.
CEO addresses bomb threats and outlook
Chief executive Luis Gallego said the group followed strict protocols during recent bomb threats that diverted flights across Europe, adding that each threat must be taken seriously. He expressed a positive outlook for the rest of the year and the start of 2027, citing efficiency efforts and capacity management.
Full-year fuel bill expected to reach €8.9 billion
IAG now expects full-year fuel costs to soar to €8.9 billion (£7.28 billion). The group aims to pass nearly 100% of higher fuel costs to fares over the full year, while Ryanair has warned of double-digit fare increases across Europe next year.
