International Airlines Group (IAG), the parent company of British Airways, Iberia, Vueling, and Aer Lingus, experienced a decline in profitability in the third quarter of 2026 despite increasing its revenue.
The group's third-quarter revenue rose by 4.5 percent compared to the same period last year, reaching 9.74 billion euros. Conversely, operating profit fell by 15.9 percent to 1.73 billion euros. Net profit also decreased by 12.2 percent to 1.23 billion euros.
The sharp increase in fuel expenses stood out as the primary factor in the decline in profitability. IAG's fuel costs rose by 30.4 percent year-on-year in the third quarter. It was also noted that operational disruptions exerted pressure on financial performance.
Due to the impact of rising costs, the group's operating margin fell from 22 percent to 17.7 percent. This decline in margin, despite growth on the revenue side, highlighted the impact of cost pressures on the balance sheet.
The airlines under the IAG umbrella carried a total of 92.6 million passengers in the first nine months of 2026. This figure represents a limited increase of 0.2 percent compared to the same period last year.
Despite the decline in profitability seen in the third quarter, company management did not change its year-end expectations. The group expects its operating margin before exceptional items to be at least 12 percent by the end of 2026.
News Source: 12punto
