IAG reports 35% profit drop after fuel cost hit

THE NEWS: International Airlines Group (IAG) reported a 35% drop in profit after tax to €732 million (£627 million) for the three months ended June 30, down from €1.1 billion (£940 million) a year earlier, as fuel costs and emissions charges surged.

DETAILS:

WHY IT MATTERS: The profit decline underscores how volatile fuel prices and geopolitical turbulence can erode airline earnings, potentially prompting carriers to adjust ticket pricing or capacity, which will directly affect travel‑trade partners, tour operators and customers.

FAQ

How much did IAG’s profit after tax fall in the latest quarter?
IAG’s profit after tax fell 35% to €732 million (£627 million) in the three months ended June 30, compared with €1.1 billion (£940 million) in the same period a year earlier, according to its earnings release.

What was IAG’s revenue for the three months to the end of June?
IAG reported revenue of €8,883 million (£7,603 million) for the three‑month period to the end of June, which was unchanged from the prior year, as stated in its quarterly results.

How much did IAG’s fuel costs and emissions charges increase, and what caused the rise?
The group said its fuel costs and emissions charges rose 23% in the quarter, attributing the increase to the conflict in the Middle East, which amplified energy prices and affected its profitability.

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