International Airlines Group (IAG), the parent of British Airways, said it will raise ticket prices to offset rising jet fuel costs, although it has not experienced any disruption to fuel supplies.
The move comes as airlines across Europe grapple with uncertainty linked to the U.S.-Israeli conflict with Iran and disruptions around the Strait of Hormuz.
Carriers including easyJet and tour operator TUI Group have already issued profit warnings, while Air France-KLM introduced fuel surcharges on some routes shortly after the conflict began.
European airlines have so far been partly shielded from rising fuel costs through hedging strategies, but that protection is expected to weaken in the coming months, leaving earnings more exposed to price volatility.
IAG acknowledged that, despite its hedging, it is “not immune” to broader market pressures. The company also called for greater flexibility from governments — particularly around airport slot rules — to help airlines manage rising costs while maintaining operations and supporting travel and trade.
