IAG REPORTS 16 PER CENT FALL IN NINE-MONTH PRE-TAX PROFIT

British Airways owner International Airlines Group (IAG) said its pre-tax profit fell 16 per cent to €3bn in the nine months to the end of September. The group attributed the decline to higher jet fuel prices following the outbreak of war in the Middle East and the closure of the Strait of Hormuz. IAG said fuel costs, including emissions charges, rose 19 per cent to €6.4bn over the period. Chief executive Luis Gallego highlighted the “very high price of jet fuel” in his statement to shareholders on Friday.

IAG also owns Iberia, Aer Lingus, Vueling and LEVEL. Before releasing its third-quarter results, the group had cut its capacity outlook for 2026. IAG’s second-quarter operating profit before exceptional items fell to €1.41bn from €1.68bn a year earlier. That result exceeded analysts’ expectations of €1.37bn.

IAG said it had secured fixed prices through hedging contracts for about 70 per cent of its fuel requirements for the current financial year and 45 per cent for 2027. The group increased its dividend by 10 per cent to €0.053 per share. Ryanair has hedged about 80 per cent of its current-year fuel needs at €67 per barrel, with 25 per cent hedged at about €95 for next year. The Dublin-based airline said it was considering pay freezes and artificial intelligence efficiency measures to absorb what it estimated would be €2bn in additional fuel costs next year.