Parent company IAG suffers 35% drop in profits after fuel cost hit

International Airlines Group (IAG), parent company of British Airways, reported a 35% fall in profits as fuel costs and emissions charges rose. For the three months ended June, IAG’s pre-tax profit dropped to 732 million euros (£627 million), down from 1.1 billion euros (£940 million) a year earlier. Fuel costs and emissions charges increased 23%, linked to the conflict in the Middle East, while revenue remained stable at 8,883 million euros (£7,603 million). CEO Luis Gallego said the group has “excellent fundamentals” and that its portfolio of brands leaves it well placed to handle “near-term headwinds.” IAG expects travel demand across its network to remain strong, with about 57% of seats booked for the second half and revenue from those bookings in line with last year.