British Airways owner IAG to raise ticket prices amid jet fuel shortage crisis
British Airways parent flags higher fares despite hedging against fuel volatility: Reuters
Dubai: International Airlines Group (IAG) announced Friday it will raise ticket prices to offset rising jet fuel costs linked to the ongoing US-Israel-Iran war, even as it says supply remains stable, according to a Reuters report.
The airline group — which owns British Airways, Iberia, and Aer Lingus — said higher fuel expenses are starting to feed into fares.
While IAG noted that it is not currently experiencing disruptions to jet fuel supply, it acknowledged that it is “not immune” to the broader fallout from rising costs.
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There is mounting pressure across the aviation sector as conflict in the Middle East drives volatility in energy markets.
Other European carriers have already flagged the impact. Airlines including easyJet and TUI Group have issued profit warnings, while Air France-KLM has introduced fuel surcharges on some routes.
For IAG, fuel hedging — buying fuel in advance at fixed prices — has so far helped cushion the impact. However, the group signalled that this protection will weaken in the coming months, leaving it more exposed to price swings.
“Flexibility from government, including on airport slot alleviation, would ensure airlines can continue to operate as efficiently as possible and manage sustained cost challenges while keeping people and trade moving,” Reuters reported, quoting an IAG spokesperson.
