British Airways Owner Sees Profit Hit as War Hikes Fuel Bill

British Airways owner IAG SA said profit and free cash flow for the year will be lower than previously anticipated amid a surging fuel bill, driven by soaring oil prices from the Middle East war.

The company said it will pay about €2 billion ($2.3 billion) more for fuel in 2026, leading to a total bill of about €9 billion. While the airline group aims to to generate “significant” free cash flow in the year, it will be less than the €3 billion guided in February, IAG said. Capital spending will be about €3.5 billion, down from a previous goal of €3.6 billion.