IAG’s Third-Quarter Net Profit Falls 12%

International Airlines Group (IAG), the parent company of British Airways, Iberia, Aer Lingus and Vueling, reported a 12.2% decline in net profit in the third quarter of 2026, driven by rising fuel costs. The group’s net profit fell from €1.4 billion to €1.23 billion during the July–September period, while operating profit before exceptional items decreased by 15.9% to €1.73 billion. Meanwhile, total revenue increased by 4.5% to €9.74 billion.

According to the financial results released by IAG on November 6, higher jet fuel prices linked to the ongoing conflict in the Middle East increased the group’s operating costs. Unit fuel costs rose by 30.7% year-on-year in the third quarter, while air traffic control disruptions and operational challenges further affected profitability. The company also raised its estimated fuel bill for 2026 from €8.6 billion to €8.9 billion.

Due to higher costs and reduced operations in the Middle East, IAG expects its total flight capacity in 2026 to be slightly below 2025 levels. Nevertheless, the group highlighted continued strong passenger demand, particularly on North and South Atlantic routes, and maintained its full-year operating profit margin target of at least 12%.