Owner IAG expects to recover 60% of additional fuel bill caused by Iran war through ‘revenue and cost management’
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British Airways fares will rise to try to recoup most of a €2bn (£1.7bn) hit in fuel costs this year, its parent group has said, adding that the Iran war will dent profits.
The International Airlines Group (IAG) said its annual fuel bill was now expected to be about €9bn, up from the forecast €7.1bn, as 70% of its supply was hedged, shielding it from the full impact of soaring jet fuel prices since the start of the conflict.
It expects to recover about 60% of the €2bn additional fuel costs through “revenue and cost management actions”, with fare rises primarily loaded on BA rather than its sister airlines.
