IAG SA predicted profit and free cash flow for the year will be lower than previously anticipated amid a surging fuel bill, while saying the market weakness may create opportunities to buy up struggling competitors.

IAG estimates it will pay about €2 billion ($2.3 billion) more for fuel in 2026, leading to a total bill of about €9 billion. While the airline group aims to generate “significant” free cash flow in the year, it will be less than the €3 billion guided in February, IAG said. Capital spending will be about €3.5 billion, down from a previous goal of €3.6 billion.