IAG CEO Luis Gallego warns that rising SAF mandates and high fuel costs threaten European aviation competitiveness after the group reported a 16% profit decline to €3 billion.
The article confirms a 16% decline in IAG's nine-month pre-tax profit to approximately €3 billion amid sharply rising jet fuel prices, a hard negative figure. CEO Luis Gallego warns that SAF mandates, set to rise from the current 3.7% to 10% by 2030, will impose major cost disadvantages on European airlines and push fares up, with SAF supply insufficient. The cost burden and profit deterioration weigh on the shares, though the article also notes UK officials are consulting on a 'common sense approach' that could soften the rules.
International Airlines Group (IAG) reported a 16% decline in nine-month pre-tax profit to approximately €3 billion, citing surging jet fuel prices linked to the Strait of Hormuz closure. CEO Luis Gallego warned that aggressive sustainable aviation fuel (SAF) mandates, set to rise from 3.7% to 10% by 2030, threaten the competitiveness of European carriers and will likely drive up passenger ticket prices.
Airlines must blend 3.7% sustainable aviation fuel today, rising to 10% by 2030. IAG's CEO says producers are not making enough SAF to meet the targets, so compliance will add major costs, giving European airlines a cost disadvantage against global competitors and raising fares.
Yes, nine-month pre-tax profit declined 16% to approximately €3 billion, driven by sharply rising jet fuel prices.