International Airlines Group (IAG) has reported second-quarter profits that fell short of market estimates, as soaring fuel costs linked to the ongoing conflict in Iran continue to squeeze the carrier's margins.
The group, which owns British Airways and Aer Lingus, also signaled a cautious outlook for the remainder of the year, stating it now expects capacity to remain flat through 2026.
Korean Air Lines recently reported a 34% decline in second-quarter operating profit, despite posting record revenue, highlighting how surging fuel expenses are eroding profitability even for carriers with strong demand.
The results underscore the intensifying pressure on European aviation as geopolitical instability in the Middle East disrupts traditional supply chains and drives up jet fuel prices.
IAG's guidance cut suggests that the carrier is prioritizing cost control over volume growth in an environment where input costs remain volatile and difficult to hedge.
This development follows a broader trend of earnings deterioration across the global airline sector.
Korean Air Lines recently reported a 34% decline in second-quarter operating profit, despite posting record revenue, highlighting how surging fuel expenses are eroding profitability even for carriers with strong demand.