Middle East conflict weighs on British Airways owner IAG's profits

International Airlines Group (IAG), the owner of British Airways and Iberia, said its third-quarter net profit fell by more than 12 percent as fuel costs rose and the conflict in the Middle East disrupted flights. Profit after tax fell to 1.23 billion euros ($1.37bn) in the July-September quarter, compared with 1.4 billion euros a year earlier. The group said fuel costs rose by more than 30 percent during the quarter. “Strong pricing was offset by lower capacity, the impact of one-off disruption events and in particular by higher jet fuel prices,” the company said. IAG also cited cancellations linked to the Middle East conflict, aircraft availability issues involving engines and air traffic control disruptions.