International Consolidated Airlines Group, S.A. Earnings Recaps
Q2 2026
Aug 4, 2026
Shares fell 1.3% following IAG’s first half 2026 results, reflecting investor caution amid margin pressure from higher fuel costs and mixed performance across key operating segments despite resilient revenue growth and cost discipline.
Key takeaways
- Operating profit declined €121 million year-on-year to €1.757 billion, with the operating margin contracting to 10.9%, below the group’s stated full-year target range of 12% to 15%.
- Passenger revenue rose modestly by 1.0%, driven primarily by a strong first quarter, but growth slowed significantly in the second quarter to 0.2%, weighed down by capacity constraints and competitive pressures.
- Fuel unit costs increased 12.5% due to rising commodity prices and incomplete hedging offsets, significantly impacting profitability, particularly in price-sensitive short-haul segments.
- British Airways delivered a modest profit increase (€44 million), contrasting with declines at Iberia (–€38 million), Vueling (–€49 million), and Aer Lingus, which swung to an operating loss (€34 million), reflecting a mix of higher fuel costs, competitive intensity, and operational challenges.
- The loyalty business remained a bright spot, with operating profit up 25% to GBP 239 million and margins improving, driven by non-airline partnerships despite disruption from Middle East route suspensions.
Q3 2025
Nov 7, 2025
International Airlines Group (IAG) reported a solid Q3 2025, with a 2% increase in passenger revenue and strong operational margins at 22%, driven by robust travel demand and effective cost management.
Key takeaways
- Operating profit up EUR 40 million YoY, aided by solid performances from Iberia and Aer Lingus.
- Margins across all airlines exceeded 20%, with Iberia achieving a 23.7% margin.
- Non-fuel costs improved quarter-on-quarter, despite growing employee pay commitments; IAG remains focused on maintaining competitive cost controls.
- Plans to return excess cash to shareholders are underway, signaling confidence in ongoing value creation and balance sheet strength.
- Anticipating stable demand in the long-haul market; Q4 revenue outlook remains positive despite currency headwinds.