IAG “Confident” of Jet Fuel Supply Availability Throughout the Summer

The International Consolidated Airlines Group (IAG) said Friday that it is confident of jet fuel supply in its main markets throughout the summer but raised its 2026 cost guidance to reflect higher prices.

“We are confident with our fuel availability through the summer due to our positions in our main markets and the fact that we have invested in self-supply capability in our hubs,” CEO Luis Gallego said in an earnings call with analysts.

Still, the owner of airlines including British Airways and Iberia warned that it now expects a fuel bill of €9.0 billion ($10.6 billion) this year, up from the previous forecast of $7.0 billion. IAG is currently 70% hedged for the remainder of 2026.

“Today, the situation is more about price than availability,” Gallego said.

Global jet prices have soared since the strait of Hormuz was shut by Iran at the start of March. CIF jet fuel cargo prices in Northwest Europe averaged $1,519/metric ton in April and $1,540/mt in March, up from $777/mt in February, according to OPIS data.

Reporting by Jaime Llinares Taboada, jllinares@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com