LONDON: IAG, parent group of British Airways and Spanish carrier Iberia, said Friday that the Middle East war will lower its annual profits despite a strong start to 2026.

“Whilst the first quarter was relatively unaffected by the Middle East conflict we expect it to have a more substantial impact throughout the rest of the year as the increase in the fuel cost starts to manifest itself,” IAG said in an earnings statement.

“As a result we expect our profit to be lower than originally anticipated at the beginning of the year.”