IAG curbs 2026 growth plans on higher fuel bill

LONDON - A sharp rise in kerosene prices is thwarting the business forecasts at IAG. The airline group expects to spend an extra two billion Euros on fuel this year. So far, the war in Iran has not dented demand among IAG airlines including British Airways with group revenue up 1.9 percent in the first quarter.

"IAG is uniquely positioned to navigate the current headwinds created by the Middle East conflict," IAG CEO Luis Gallego said. "We are actively managing the uncertainty created by the fuel price increase and its impact, taking the necessary action on yields, costs and capacity."

While competitors Air France-KLM and Lufthansa confirmed their forecasts for 2026 - citing higher ticket prices and load factors - "the impact of the higher fuel price will inevitably lead to lower profit this year than we originally anticipated," Gallego said.

IAG curbs its three percent supply growth plans for the current year to a one per cent increase for the second quarter and a two per cent increase for the third quarter.