# BA parent company IAG suffers 35% drop in profits after fuel cost hit

By Russ Mould — 2026-07-31

Russ Mould, investment director at AJ Bell, said: “The turbulence from the Iran conflict has undoubtedly clipped the wings of British Airways owner International Consolidated Airlines as the company ditches any plans for growth this year.

“Airlines face not only the impact of soaring fuel costs but also the impact of geopolitical tensions and cost of living pressures on holidaymakers’ appetite to book a week or two in the sun.

“Not only is the outlook for the rest of the year substantially worse but the numbers for the second quarter itself are disappointing. The business is doing what it can to mitigate rising costs, through hedging, increased fares and cost controls.

“However, the longer the fighting in the Middle East continues without any clear sign of a diplomatic breakthrough the greater the pressures on the airline are likely to become.”

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