Business · Companies · 13 hrs ago
NATS outage and higher fuel costs cut IAG profits
IAG, which owns British Airways, Iberia and Vueling, reported lower profits for the three months to September 30.
It said a UK air traffic control outage on September 8 affected 500 flights and 85,000 customers across its airlines.
The failure at National Air Traffic Services was caused by a defect in legacy software, not a cyberattack, and disrupted UK flights for several days.
IAG put its cost from the outage at up to 30 million euros, while a separate estimate put the cost to the UK economy at around £33 million.
Jet fuel costs rose 30.4%, adding 570 million euros to IAG’s costs in the quarter.
The group’s pre-tax profit fell 12.9% to 1.63 billion euros, despite revenue rising 4.5%.
IAG expects full-year fuel costs to reach 8.9 billion euros and says it is managing capacity and seeking savings; its chief executive described the outlook for the rest of the year and start of next year as positive.
IAG said its third-quarter profits fell as higher jet fuel costs and the September 8 NATS air traffic control outage affected earnings.
The outage cost IAG an estimated €25 million to €30 million and affected 500 of its flights and 85,000 customers.
IAG’s pre-tax profit fell 12.9% to €1.63 billion in the three months to September 30.
Jet fuel costs rose 30.4%, increasing by €570 million in the quarter.
A Cyber Monitoring Centre report estimated the outage cost the UK economy around £33 million.
- Who
- International Airlines Group (IAG), owner of British Airways, Iberia and Vueling.
- What
- IAG reported lower third-quarter profits, citing higher fuel costs and the NATS air traffic control outage.
- When
- The results cover the three months to September 30, 2026. The NATS incident occurred on September 8.
- Where
- The outage affected UK air traffic; IAG operates airlines including British Airways, Iberia and Vueling.
- Why
- IAG said profits were affected by a 30.4% rise in jet fuel costs and the NATS outage.
This story does not have two clearly opposing sides.
A NATS air traffic control incident disrupted flights.
The Cyber Monitoring Centre published a report estimating the outage’s cost to the UK economy.
Infosecurity Magazine reported the CMC’s findings.
The Evening Standard reported IAG’s third-quarter results and estimated outage costs.
- IAG outage cost estimate
- €25 million to €30 million
- IAG flights affected
- 500
- IAG customers affected
- 85,000
- UK economy outage cost
- Around £33 million
- IAG pre-tax profit
- €1.63 billion, down 12.9%
3 sources
What people are saying
Organizations need to understand and plan for the risks that sit in systems they depend on, not just the systems they own.
As a result of the actions we are taking, the outlook for the rest of the year, as well as the start of next year, is positive.