IAG stock faces fuel pressure as Q3 operating profit falls 15.9%

International Airlines Group reported stronger revenue but weaker profitability for the third quarter on Friday, November 6, 2026. The owner of British Airways, Iberia, Aer Lingus, Vueling and LEVEL said higher fuel costs and operational disruption outweighed resilient demand, particularly on transatlantic routes. Edison Group reported that revenue increased 4.5% to EUR 9.74 billion, while operating profit before exceptional items declined 15.9% to EUR 1.73 billion.

IAG stock traded at 5.14 euros on Lang & Schwarz at 11:43 CET on Friday, November 6, 2026. The real-time quote of International Airlines Group stock showed the current Lang & Schwarz indication.

Revenue growth meets cost pressure

Passenger unit revenue rose 4.1% while group capacity edged down 0.2%. The North Atlantic was the strongest market, with unit revenue up 11.0% on broadly unchanged capacity. British Airways increased North Atlantic unit revenue by 12.0%, while Latin America and the Caribbean combined 5.4% capacity growth with a 2.3% increase in unit revenue.

Fuel was the main earnings headwind. IAG's fuel costs rose by roughly 30% in the quarter, and non-fuel unit costs increased 3.4% as air traffic control outages, route disruption and lower-than-planned capacity weighed on operations. European competition also prompted the group to reduce capacity in selected markets to protect profitability. Middle Eastern route suspensions continued to affect aircraft deployment.

Guidance holds as assumptions weaken

Management retained its target for a full-year operating margin before exceptional items of at least 12%, within its long-term range of 12% to 15%. Edison Group said IAG had secured 85% of expected fourth-quarter bookings and was seeing strong early bookings for the first quarter of 2027.

The planning assumptions are less supportive than after the first half. Full-year capacity is now expected to decline slightly from 2025 rather than remain flat, non-fuel unit costs are expected to rise by about 1%, and fuel costs are forecast at EUR 8.9 billion, up from the previous EUR 8.6 billion assumption. Capital expenditure is expected at EUR 3.1 billion, partly reflecting delayed aircraft deliveries.

Shareholder returns remain in focus

IAG increased its interim dividend by 10% to EUR 0.053 per share and started the final EUR 500 million tranche of its EUR 1.5 billion buyback programme. Net leverage stood at 0.6 times, supporting continued capital returns despite the pressure on quarterly earnings. IAG Loyalty also strengthened diversification, with operating profit rising 8% to GBP 152 million.

The results leave investors weighing robust pricing and forward bookings against fuel inflation, disruption costs and restrained capacity growth. The group is scheduled to continue reporting operational developments through its investor-relations programme.

Market conditions for European airlines can be followed through the IBEX 35 market coverage.

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