International Airlines Group (IAG), the parent company of British Airways, reported on Friday, November 6, 2026, that its pre-tax profits fell 12.9% during the third quarter. The company attributed the decline to a sharp increase in jet fuel prices and operational disruptions caused by air traffic control issues.
The profit drop occurred during the three-month period ending September 30, 2026. During this time, the company’s operating profits decreased by 15.9% to 1.73 billion euros (£1.42 billion). IAG noted that while revenues rose by 4.5%, this growth was insufficient to offset a 30.4% surge in the cost of jet fuel.
The company stated that fuel prices have been driven higher by the war in Iran. Additionally, IAG cited an incident at National Air Traffic Services (Nats) on September 8. This outage resulted in the cancellation of more than 2,000 flights and affected hundreds of thousands of passengers.
The scale of the impact is reflected in the 12.9% drop in pre-tax profits, which fell to 1.63 billion euros (£1.33 billion) for the quarter. While the company did not specify a per-ticket price increase, rising fuel costs typically influence airline pricing strategies and profit margins. The report highlights how geopolitical events, such as the war in Iran, and infrastructure failures, such as the air traffic control outage, can disrupt large-scale transportation networks and their financial stability.
Looking ahead, IAG Chief Executive Luis Gallego stated that despite these quarterly figures, the company’s outlook for the remainder of the year and the beginning of the next year remains positive. The airline group is continuing efforts to implement cost-saving measures to mitigate the impact of non-fuel expenses and operational disruptions. The final financial totals for the year will be determined after the current reporting period concludes.