International Airlines Group (IAG), which includes British Airways, Aer Lingus and Iberia, will increase its jet fuel costs by €2bn due to the energy crisis caused by the conflict in the Middle East, the Financial Times (FT) reported, citing its own sources.
According to a statement from IAG, the conflict will have a “significant impact“ on the group's business this year and will negatively affect its profits.
However, according to Luis Gallego, head of the aviation holding, the strength of IAG's supply chain and fuel reserves allow it to “supply markets throughout the summer”. “The situation today is more about the price of fuel than its availability,“ Gallego added.
The United States and Israel launched a war against Iran on February 28. According to Iranian officials, 3,375 Iranians were killed in US-Israeli strikes during the 40-day war. On April 11, Tehran and Washington held talks in Islamabad, but the two sides failed to reach an agreement on a long-term settlement to the conflict due to a number of differences.