IAG CEO on the value of diversification amid soaring fuel prices
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On November 13, 2026, IAG CEO Luis Gallego said at the Skift Aviation Forum that IAG's resilience comes from a combination of diversified operations and centralized investment decisions; each airline can adopt different strategies but must compete for capital based on expected returns. IAG reviews investment proposals from its airlines twice a year, and the group's operating margin target is 12% to 15%. He mentioned that British Airways is expanding premium seats to match London demand and operates a three-year fuel hedging policy, but he expects the buffer provided by hedging to decrease in 2027.
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- Skift FeedIAG CEO on the value of diversification when fuel prices surge
Speaking at the Skift Aviation Forum, IAG CEO Luis Gallego said IAG's resilience comes from a combination of diversified operations and centralized investment decisions; individual airlines can adopt different strategies but must compete for capital based on expected returns. IAG reviews investment proposals from its airlines twice a year, and the group's operating margin target is 12% to 15%. He mentioned that British Airways is expanding premium seats to match London demand and follows a three-year fuel hedging policy, but expects the buffer from hedging to diminish in 2027.
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