STORY: British Airways owner IAG joins other airline companies hit by the war on Iran.
It warned on Friday (May 8) its annual profit will be lower than forecast.
That's as the conflict-linked soaring jet fuel costs and supply disruptions will weigh more heavily on earnings than previously expected.
The company joins Air France and easyJet in flagging a hit linked to spiraling fuel costs.
And said both capacity and free cash flow will be lower than previously projected.
IAG, which also owns Iberia and Aer Lingus, expects jet fuel costs to be just over $10.5 billion this year.
Which, CEO Luis Gallego said, is over £2.3 billion higher than in 2025.
But 70% of IAG's anticipated fuel needs are hedged for the remainder of the year.
And Gallego said in a statement that the firm wasn't concerned with fuel availability.
The company didn't give specific projections for annual profit on Friday but said that "capacity will be lower than the 3% increase guided at full-year results."
IAG beat profit expectations when it reported full-year results in February, but its shares dropped on uncertainty over its 2026 guidance.
Shares were down 3% before the bell but made some recovery in afternoon trade.
And analysts remained upbeat on the group's outlook.
