International Airlines Group (IAG), which also includes Iberia and Aer Lingus among its stable of brands, said in a trading update that the strength of its supply chain and inventories meant it was well placed to avert turbulence facing the industry.
But the company added: “If the current conflict continues to restrict flows of both crude oil and jet fuel from the Middle East, there is the potential for supplies of jet fuel to be restricted on a global basis.
“We are engaging with governments in each of our home markets as well as with the EU to ensure that the industry is getting the support it needs to navigate this situation.”
Money latest: You should reconsider decision not to appeal parking fine
IAG gave its update as the industry grapples not only higher jet fuel prices – for which the company said it was 70% hedged for the rest of 2026 – but also flight disruption arising from the Middle East conflict.
The effective closure of the key Strait of Hormuz shipping route by Iran has stripped the world of not only a fifth of its usual oil and natural gas supplies but also sizeable volumes of refined products, including jet fuel.
It was revealed earlier this week that airlines were cutting 13,000 flights in response to the growing crisis.
The UK government, in a bid to preserve fuel stocks, is allowing airlines to cancel flights in advance and to book passengers across rival carriers to ensure aircraft are full.
Ministers insist there is currently no issue with supply though a recent report suggested the UK was the country most exposed in Europe to a supply squeeze, citing a lack of storage capacity and collapse in domestic production that has forced a reliance on imports.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.
