Middle East conflict weighs on profits at British Airways owner IAG

International Airlines Group (IAG), the owner of British Airways and Iberia, has reported a more than 12 percent fall in third-quarter net profit, citing soaring fuel costs and flight disruptions linked to the conflict in the Middle East.

Profit after tax fell to 1.23 billion euros ($1.37 billion) in the July-September period, compared with 1.4 billion euros a year earlier, the group said. IAG reported that its fuel costs rose more than 30 percent during the quarter.

“Strong pricing was offset by lower capacity, the impact of one-off disruption events and in particular by higher jet fuel prices,” the company said.