IAG CUTS GROWTH OUTLOOK – British Airways owner hit by fuel costs and weaker demand
British Airways owner IAG has cut its growth outlook for next year after reporting a 16% fall in second-quarter profits, blaming higher fuel costs and weaker travel demand linked to the conflict in the Middle East.
The airline group now expects capacity to remain flat in 2026, down from its previous forecast of growth of up to three percent. Shares fell in early trading following the announcement before recovering some of the losses.
IAG says rising oil prices have pushed up operating costs, while uncertainty over the conflict has affected demand for air travel. Despite the profit decline, results came in slightly ahead of analysts’ expectations.
The company joins other European airlines, including Ryanair and easyJet, in warning that the continuing conflict is putting pressure on the aviation industry, prompting carriers to tighten spending and review future flight capacity.
