IAG, the owner of British Airways and Iberia, said Friday that its net profit dropped more than 12% in the third quarter on soaring fuel costs and flight disruptions caused bythe Middle East conflict.
Profit after tax fell to €1.23 billion (US$1.37 billion) in the July-September period compared with €1.4 billion for the third quarter of 2025, IAG said in a statement.
“Strong pricing was offset by lower capacity, the impact of one-off disruption events, and, in particular, higher jet fuel prices,” IAG said, with its fuel costs up more than 30% in the quarter.
Revenue climbed 4.5% to €9.74 billion.
IAG chief executive Luis Gallego said the company had delivered a “resilient quarter… despite the very high price of jet fuel and a number of one-off disruption events”.
The group said its overal flight capacity hadbeen hit “by cancellations due to the conflict in the Middle East, together with aircraft availability linked to engine issues and disruption related to air traffic control disruption”.
Britain’s air traffic control service suffered a technical glitch in September that sparked chaos.
Among IAG’s other brands are Irish airline Aer Lingus and Spanish carrier Vueling.
