British Airways’ parent company warned its profits will be hit as it expects to spend about two billion euro (£1.72 billion) more than planned on fuel this year amid the Iran oil crisis.
International Airlines Group (IAG) chief executive Luis Gallego said it is “managing the uncertainty” caused by the fuel price increase by “taking the necessary action on yields, costs and capacity”.
He added: “Whilst the impact of the higher fuel price will inevitably lead to lower profit this year than we originally anticipated, we are confident in our business model and strategy.”
Mr Gallego said IAG is “not currently seeing any jet fuel supply disruptions across our main hubs or markets” and is “confident in fuel availability through the summer”.
