By Benjamin Katz

The Iran war has sparked fears about European airlines running out of jet fuel. British Airways on Friday sought to downplay those concerns.

"Let me be clear on fuel availability: we are not currently seeing jet fuel interruptions and we do not expect supply issues this summer," Luis Gallego, chief executive of BA's parent company IAG told reporters on an earnings call.

Despite "mixed messages" about supplies across the industry, BA and its sister carriers have shored up enough jet fuel to make it through the profitable summer season, Gallego said.

Overall, the situation is improving, he added, with flows of jet fuel from the U.S. helping offset disruption caused by the standoff between Iran and the U.S. in the Strait of Hormuz.

Still, IAG hasn't escaped the pain from higher prices. The airline group, which also owns Spain's Iberia and Ireland's Aer Lingus, is facing a 2 billion euro-equivalent to about $2.35 billion-increase in fuel costs this year based on current prices.

To offset surging fuel prices, IAG is seeking out cost efficiencies and has raised ticket prices. Demand hasn't taken a hit as a result, Gallego said, with sales from bookings in the current quarter in line with previous years.

Longer term, the cost crisis could create opportunities for the airline group, Gallego said, potentially winning market share from rivals who might be forced to cut capacity.

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May 08, 2026 05:56 ET (09:56 GMT)

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