IAG Warns of Lower Profits on Surging Fuel Costs

International Airlines Group, parent company of British Airways, warned on Monday that its full-year profits will fall short of earlier expectations due to surging jet fuel costs driven by the ongoing Middle East conflict.

The airline group anticipates spending about 2 billion euros, or 1.72 billion pounds, more on fuel than planned this year. Chief Executive Luis Gallego stated, "We are actively managing the uncertainty created by the fuel price increase and its impact, taking the necessary action on yields, costs and capacity." He added that while higher fuel prices will lead to lower profits than anticipated, "we are confident in our business model and strategy, which has made us one of the best-performing airline groups in the world."

The warning comes amid heightened tensions over the Strait of Hormuz, where restrictions on oil and jet fuel tankers have pushed Brent crude above 100 dollars a barrel. IAG officials noted no current disruptions to jet fuel supplies at their main hubs and expressed confidence in availability through the summer, bolstered by investments in fuel self-supply.

Global aviation data from Cirium showed 13,005 flights planned for May were canceled...