Finance
British Airways-Owner Iag to Adjust Ticket Prices Over Fuel Crisis
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
Add as preferred source on GoogleQuick Summary
IAG, owner of British Airways, will adjust some ticket prices to reflect rising jet fuel costs amid the fuel crisis, while noting no current supply interruptions and calling for government flexibility on slot rules to mitigate cost pressures.
British Airways-owner IAG to raise ticket prices over fuel crisis
Impact of Fuel Crisis on European Airlines
IAG's Response to Rising Jet Fuel Costs
LONDON, April 24 (Reuters) - British Airways-owner IAG said on Friday it will raise ticket prices to reflect higher jet fuel costs, but was not seeing interruptions to jet fuel supply.
Industry-Wide Effects and Reactions
Profit Warnings from Competitors
Airlines like Britain's easyJet and German tour group TUI have issued profit warnings recently as a result of uncertainty tied to the U.S.-Israeli war with Iran and the subsequent blockage of the Strait of Hormuz.
Fuel Surcharges Introduced
Air France-KLM said soon after the war began in March that it would add a jet fuel surcharge to some of its tickets.
European vs. American Airlines: Hedging and Vulnerability
Hedging Strategies
European airlines have been more shielded than American carriers from rising jet fuel costs thanks to extensive hedging, but the effect will start to diminish in the coming months, making their earnings more vulnerable to fuel-price volatility.
IAG's Statement on Broader Fallout
IAG said in a statement that despite its fuel hedges, it was "not immune" to the broader fallout.
Call for Government Flexibility
"Flexibility from government, including on (airport) slot alleviation, would ensure airlines can continue to operate as efficiently as possible and manage sustained cost challenges while keeping people and trade moving," an IAG spokesperson said in a statement.
(Reporting by Joanna Plucinska; Editing by Susan Fenton, Kirsten Donovan)
Key Takeaways
- •IAG is introducing selective ticket price increases due to soaring jet fuel costs, though supply remains stable.
- •The group benefits from fuel hedging covering ~62% of consumption, cushioning impact compared to airlines with less hedging cover.
- •IAG urges government slot alleviation to help maintain operational efficiency and manage elevated costs.
Frequently Asked Questions about British Airways-owner IAG to adjust ticket prices over fuel crisis
1Why is IAG adjusting British Airways ticket prices?
IAG is adjusting ticket prices to reflect the impact of higher jet fuel costs.
2Is British Airways experiencing jet fuel supply interruptions?
No, IAG reported it is not seeing any interruptions to jet fuel supply.
3What support does IAG seek from the government?
IAG is seeking government flexibility on slot alleviation to help airlines operate efficiently amid sustained cost challenges.
4Who reported on the IAG ticket price changes?
The article was reported by Joanna Plucinska and edited by Susan Fenton.
