"The owner of British Airways has warned that the war in Iran will saddle the group with a €2 billion fuel bill shock this year, taking the gloss off a bullish set of first-quarter numbers and forcing the City to rein in its profit expectations."
"International Airlines Group (IAG), the FTSE 100 carrier that also owns Iberia, Vueling and Aer Lingus, told shareholders that surging jet fuel prices triggered by the closure of the Strait of Hormuz, the chokepoint through which roughly a fifth of the world's oil and gas flows, would push its annual fuel costs to about €9 billion, up from €7 billion in 2025."
"“We currently see no issues with fuel availability in our main markets, particularly as we benefit from the strength of our supply chain, stocks and particularly our self-supply arrangements at our key hubs,” Mr Gallego said. “We are confident in fuel availability through the summer.”"
"In a clear signal of confidence, IAG confirmed it would press ahead with its €1.5 billion share buyback, a programme it green-lit only the day before American and Israeli forces launched strikes on Iran in late February. The conflict has since dominated a third of the airline's first trading quarter."
IAG, owner of British Airways, warned that war in Iran will increase jet fuel costs by about €2 billion this year, reducing optimism from first-quarter results. Closure of the Strait of Hormuz is driving higher jet fuel prices, pushing annual fuel costs to around €9 billion from €7 billion in 2025. The chief executive said the group is uniquely positioned to handle the turbulence and sees no issues with fuel availability in main markets. IAG cited strength in its supply chain, stocks, and self-supply arrangements at key hubs, and said it is confident through the summer. The company also plans to continue a €1.5 billion share buyback despite the conflict.
Read at Business Matters
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