IAG profit falls 16.2% in nine months as fuel bill heads to €8.9bn

Group results

IAG, the holding company behind British Airways, Iberia, Vueling, Aer Lingus and Level, booked a profit after tax of €2,264 million for January to September 2026, 16.2% less than a year earlier. The figures were filed with the CNMV on Friday, 6 November 2026. Revenue rose 2.3% to €25,808 million, while operating profit fell 15.2% to €3,334 million, and third-quarter revenue reached €9,744 million, up 4.5%. The group carried 92.6 million passengers over the period, up 0.2%, with a load factor of 86.1%. Net debt fell to €4,220 million at 30 September from €5,948 million a year earlier, and net leverage stood at 0.6 times.

Fuel costs and the outlook

Fuel is the main drag on the accounts. Fuel and emissions charges reached €6,400 million in the nine months, up 18.6%. The fuel curve dated 3 November 2026 puts this year's fuel bill at €8,900 million, €300 million more than the €8,600 million projected at the end of July. IAG says it has recovered about 60% of the fuel cost increase through revenue growth and cost measures, with its hedging policy softening the impact. Chief executive Luis Gallego said the group is on track for an operating margin before exceptional items of at least 12% for the full year, inside its through-the-cycle target range.

End-July 2026 estimate8,600

Fuel curve as of 3 Nov 20268,900

End-July 2026 estimate

8600 € million

Fuel curve as of 3 Nov 2026

8900 € million

Data from the article text

Capacity for 2026 will be slightly lower than in 2025, reversing the earlier expectation of stability, because of the absence of capacity in the Middle East and disruption to the airlines. Even so, 85% of forecast fourth-quarter bookings are already secured, and first-quarter 2027 bookings are described as "very solid".

Airline breakdown

Iberia's operating profit for the nine months was €978 million, 9% lower, and it recorded €114 million in restructuring costs. Its passengers fell 0.1% to 18 million even as its capacity rose 2.4%. Vueling's operating profit was €303 million, down 17%, while its passenger count rose 0.3% to 29 million. Level carried 626,000 passengers, 7.7% fewer. In the third quarter, British Airways raised capacity 2.2% and unit revenue 12% on the North Atlantic, and Iberia's unit revenue on that route rose 4.2% as it flew new Airbus A321XLR routes. Europe was harder, with Iberia cutting capacity 1.2% and Vueling 5.2%.

Aer Lingus cuts

Aer Lingus reported an operating profit of €142 million for the third quarter, down €28 million from €170 million a year earlier. For the nine months, its operating profit fell 57% to €108 million from €250 million. Passenger numbers rose 1.8% in the quarter, but competitive conditions and a weaker yield environment limited its ability to offset higher fuel and other operating costs. Chief executive Lynne Embleton pointed to the shift in its market.

“Increased competition, particularly across the North Atlantic, has fundamentally changed our operating environment.”

To respond, the airline plans a 6% reduction in flying capacity, the removal of lower-margin flying and up to 500 roles, subject to ongoing consultation with unions. Embleton said the airline needs an operating margin of 12% to 15% to secure investment and support future growth. Starlink Wi-Fi is now available on almost all of its long-haul fleet, and ten Airbus A330 cabins will be retrofitted with Premium Economy introduced next year.

Jan-Sep 2025250

Jan-Sep 2026108

Jan-Sep 2025

250 € million

Jan-Sep 2026

108 € million

Data from the article text

Shareholder returns

IAG approved an interim dividend of €0.053 per share, up 10.4% from €0.048 a year earlier, payable from 7 December. The company said it plans to keep rewarding shareholders with dividends and other returns despite the higher fuel bill. Investors were due to react to the figures when trading opened later on Friday.