LONDON, March 30, 2026, 14:19 BST
International Consolidated Airlines Group SA is keeping British Airways flights to Amman, Bahrain, Dubai and Tel Aviv on hold through May 31, with service to Doha paused until April 30. At the same time, the group is adding routes to Bangkok and Singapore as travelers shift away from the Middle East conflict zone. Lufthansa and Air France-KLM are trimming some regional operations as well, highlighting the scale of disruption facing Europe’s top airline groups.
What’s changed for IAG is that this isn’t just a brief schedule trim anymore. On Monday, Europe’s aviation safety regulator pointed out that tighter flight corridors—and less predictable routings—are adding new risks. The Iran war has squeezed available airspace, shoving more traffic onto already crowded Asia-Europe routes, the agency said.
The timing is tough for IAG. Just weeks ago, the group posted a record 2025 operating profit before exceptional items—5.024 billion euros—and unveiled plans for 1.5 billion euros in shareholder returns over the next year. Back then, finance chief Nicholas Cadbury flagged “little visibility” for Q2 and Q3, noting softer conditions in Africa and the Middle East. Still, CEO Luis Gallego pointed to solid first-quarter bookings. Reuters
British Airways hasn’t only trimmed flights—it’s shifted capacity around. The airline tacked on seven additional return services to Bangkok and Singapore last week, opening up over 3,300 extra seats between March 10 and March 19. According to the carrier, travelers are hunting for alternate routes as demand shifts.
Fuel looks like the next flashpoint. While IAG has some insulation from fuel hedging—those financial instruments that help pin down a slice of future fuel and dollar costs—Reuters noted earlier this month that IAG’s overall fuel and currency hedging position has fallen roughly 9% from last year. The group’s policy permits hedging up to 75% of short-term fuel needs, and up to 80% for its budget carriers. Elsewhere, Reuters cited an estimate from J.P. Morgan: if jet fuel prices stay 10% higher, operating profit could take a 3% to 10% hit this year at IAG, Air France-KLM, Lufthansa, and Ryanair.
IAG isn’t immune if the oil spike persists and demand tapers off. “The only way to get prices up is to reduce capacity,” said Barclays analyst Andrew Lobbenberg. Rigas Doganis, chair of Airline Management Group, called the crunch between softer demand and more expensive fuel a “perfect storm.” Reuters
Another cost headache is unfolding alongside the others. Reuters reported Monday that European airlines probably hit, or even topped, the EU’s 2% sustainable aviation fuel mandate in 2025—a target designed to cut emissions compared to regular jet fuel. Still, Airlines for Europe, which counts IAG among its members, continues urging regulators to ease up on more aggressive synthetic-fuel requirements coming later in the decade. The issue: supply is limited and prices remain stubbornly high.
The next on-the-record update for investors lands May 8, with IAG scheduled to release its first-quarter numbers. By Monday afternoon, shares in London had slipped roughly 1.6%, as shown on the group’s investor relations page. Over in Madrid, the stock was down about 1.7%.
