International Airlines Group (IAG), the parent of British Airways, Iberia, and Aer Lingus, said it plans to raise ticket prices as rising jet fuel costs begin to impact operations, according to a Reuters report.
The airline group said the increase in fuel expenses—driven by ongoing tensions involving the United States, Israel, and Iran—is starting to feed into airfares, even though current fuel supply remains stable.
IAG noted that while it has not faced immediate disruptions in jet fuel availability, it is “not immune” to broader market pressures as energy prices fluctuate amid geopolitical uncertainty.
Airlines across Europe are facing similar challenges. Carriers such as easyJet and TUI Group have already issued profit warnings, citing higher operating costs. Meanwhile, Air France-KLM has introduced fuel surcharges on selected routes.
For IAG, fuel hedging—purchasing fuel in advance at fixed prices—has so far helped cushion the immediate impact of rising costs. However, the company signaled that this protection will gradually weaken in the coming months, increasing its exposure to market volatility.
An IAG spokesperson emphasized the need for policy support, saying flexibility from governments, particularly regarding airport slot regulations, would help airlines operate more efficiently and manage sustained cost pressures while maintaining connectivity for passengers and trade.
The developments highlight growing strain on the aviation sector as geopolitical tensions continue to ripple through global energy markets, with travelers likely to feel the effects through higher ticket prices in the months ahead.
Bd-pratidin English/ Jisan
