Owner of Iberia and British Airways profits 2.3 billion, down 16% due to the energy crisis

International Airlines Group (IAG), which includes Iberia and British Airways, reported a net profit of €2.3 billion, down 16.2% due to rising fuel costs. Revenue increased by 2.3% to €25.8 billion, driven by higher ticket prices, but operational disruptions and soaring fuel prices impacted profitability. Fuel costs surged by 30.4% in Q3, prompting IAG to raise its annual energy bill forecast to €8.9 billion. Despite a slight decline in aircraft occupancy rates, passenger revenue rose by 4.1%, particularly on long-haul routes. To maintain profitability, IAG reduced capacity by 1.2%, especially for Iberia and Vueling. Management remains optimistic, aiming for an operational margin of at least 12% by year-end, supported by cost control measures. Additionally, IAG initiated the final phase of a €500 million share buyback program, part of a larger €1.5 billion initiative.