IAG, ES0177542018

IAG stock: Q3 profit falls as fuel costs test strong demand

Published on 11/06/2026 at 18:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IAG stock faces higher fuel costs after third-quarter operating profit fell 16%. Strong transatlantic demand and firm bookings support the 2026 margin target.

Profit pressure meets resilient demand

Higher fuel costs and disruption reduced IAG's third-quarter profitability despite stronger revenue.
Transatlantic pricing and firm bookings support management's full-year margin outlook.
Capacity discipline, lower capital spending and shareholder returns remain central for investors.

IAG, ES0177542018, Illustration mit AI erstellt.

International Consolidated Airlines Group reported a weaker third quarter on November 6, 2026, as higher jet-fuel costs and operational disruption offset stronger pricing. AJ Bell reported that operating profit before exceptional items fell to 1.73 billion euros from 2.05 billion euros a year earlier, while revenue increased to 9.74 billion euros.

Fuel costs pressure quarterly margins

The operating margin before exceptional items narrowed to 17.7% from 22.0%. IAG said strong pricing was offset by lower capacity, one-off disruption and particularly high jet-fuel prices. Total fuel costs rose 30% year on year in the quarter, after hedging.

Long-haul demand remained the main support. Revenue trends were positive across the group's principal markets, with especially strong performance in the North and South Atlantic. Passenger revenue rose 3.8%, cargo revenue increased 3.9% and other revenue advanced 11%, supported by IAG Loyalty.

Bookings support the full-year outlook

IAG said 85% of expected fourth-quarter bookings were already secured and described bookings for the first quarter of 2027 as strong. The group reduced capacity by 1.2%, mainly at Iberia and Vueling, to protect profitability in a more challenging European market.

Management maintained its expectation of a 2026 operating margin before exceptional items of at least 12%, within its medium-term target range of 12% to 15%. Full-year capacity is expected to be slightly below 2025, while non-fuel unit costs are expected to rise by about 1%.

Returns and investment remain in focus

IAG expects total 2026 fuel costs of 8.9 billion euros and said 45% of 2027 fuel needs are hedged. Capital expenditure is expected at 3.1 billion euros, down from the previous 3.4 billion euro plan. The group also raised its interim dividend by 10% to 5.3 euro cents and started the final 500 million euro tranche of its 1.5 billion euro buyback.

IAG stock traded at 5.18 euros on Lang & Schwarz at 18:11 CET on Friday, November 6, 2026; the real-time quote of IAG stock is available here.