International Airlines Group (IAG), the parent company of British Airways, reported on Friday, November 6, 2026, that its third-quarter profits were reduced by higher fuel expenses and a September air traffic control outage. The company, which also operates Iberia and Vueling, saw its pre-tax profits for the three months ending September 30 decline 12.9% to 1.63 billion euros (£1.33 billion).
The financial report follows a technical incident involving National Air Traffic Services (Nats) on September 8. Earlier this week, the Cyber Monitoring Centre estimated that this specific outage resulted in a £33 million loss to the UK economy, affecting airports, ground operators, and tour operators in addition to airlines.
IAG reported that the September 8 incident cost the group between 25 million euros (£20.5 million) and 30 million euros (£24.6 million). The company stated the outage impacted 85,000 of its customers and led to the cancellation of 500 of its flights. Across the entire aviation sector, more than 2,000 flights were cancelled due to the technical failure.
For travelers, these costs translate to higher ticket prices. The report noted that while IAG is using fare increases and efficiency measures to mitigate expenses, other airlines are taking similar steps; earlier this week, Ryanair warned of a double-digit rise in European fares next year and is considering pay freezes for staff to manage its own fuel surge. Passengers may also notice IAG "proactively managing capacity," which the company described as focusing on profitable routes during the traditionally slower final quarter of the year.
The report also highlighted ongoing operational challenges, including flight diversions across Europe this week following a series of hoax bomb threats. IAG Chief Executive Luis Gallego stated that the airline must follow strict protocols and take every threat seriously, working with authorities to determine the best response. While Mr. Gallego described the outlook for the remainder of 2026 and the start of 2027 as positive, the group’s ability to maintain that trajectory depends on its ability to manage these external costs and disruptions. No specific dates for future fare adjustments were reported.