British Airways owner IAG profit drops over 12%

IAG, the owner of British Airways and Iberia, said its net profit fell more than 12 percent in the third quarter as higher fuel costs and disruption linked to the Middle East conflict hit the airline group.

Profit after tax fell to 1.23 billion euros, or $1.37 billion, in the July-September period, compared with 1.40 billion euros in the third quarter of 2025.

IAG said strong pricing was offset by lower capacity, one-off disruption events and higher jet fuel prices. Its fuel costs rose more than 30 percent in the quarter.

Chief financial officer Jose Antonio Barrionuevo told journalists that the group's 2026 fuel bill was expected to be close to nine billion euros.

Revenue rose 4.5 percent to 9.74 billion euros. IAG also owns Aer Lingus and Vueling.

The group said overall capacity was affected by cancellations linked to the Middle East conflict, aircraft availability tied to engine issues and air traffic control disruption. Chief executive Luis Gallego said the company delivered a resilient quarter despite the high fuel price and disruption events.