IAG issues profit warning

International Airlines Group (IAG), the owner of British Airways and Aer Lingus, has issued a stark profit warning as the war in Iran continues to disrupt global energy markets.

The group revealed that its annual fuel bill is expected to surge by approximately £1.7 billion, a cost increase it plans to partially recoup through higher ticket prices and operational savings.

Despite reporting strong first-quarter growth, IAG executives warned that the volatility in jet fuel supplies and the closure of key transit routes have created an 'unprecedented' challenge for the aviation industry.

The announcement has triggered concerns across the travel sector, with warnings that airfares across all major carriers will likely rise as the conflict in the Middle East persists.