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IAG Expects Lower Capacity as Costs Weigh on Profit

British Airways owner IAG forecasts lower annual capacity after reporting third quarter operating profit below expectations. Rising fuel costs and regional conflicts impacted operations, though premium demand remains strong.

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FILE PHOTO: British Airways signage is seen outside the British Airways headquarters and IAG head office in Harmondsworth, London, Britain, March 13, 2025. REUTERS/Toby Melville/File Photo

International Consolidated Airlines Group trimmed annual capacity on Friday morning following regional flight disruptions in Iran and surrounding areas. The pullback marks the company's first capacity reduction since 2022 amid mounting fuel expenses. Premium demand remains robust across North Atlantic routes, offsetting broader operational headwinds for the aviation sector.