International Airlines Group’s operating profit before exceptional items fell 15.9% year on year to €1.726 billion in the third quarter of 2026, despite a 4.5% rise in revenue to €9.744 billion. Higher fuel costs and operational disruption weighed on results for the three months to 30 September. IAG maintained its full-year operating-margin guidance of at least 12%, while revising its capacity outlook to a slight decline from 2025 levels.
Fuel costs and emissions charges rose 30.4% in the quarter to €2.444 billion, while non-fuel unit costs increased 3.4%. IAG linked the rise in jet-fuel prices to the conflict in the Middle East and disruption to shipping and oil exports through the Strait of Hormuz. Flight suspensions in the region, aircraft availability constraints and air-traffic-control disruption also reduced capacity, which was 0.2% lower year on year despite an original plan for growth.
The group, whose airlines include British Airways, Iberia, Aer Lingus, Vueling and LEVEL, carried 34.655 million passengers, up 0.2%. Profit after tax declined 12.2% to €1.231 billion. IAG now expects full-year fuel costs of about €8.9 billion, based on jet-fuel prices and exchange rates on 3 November, and forecasts capacity to be slightly below 2025. It raised its interim dividend by 10% to €0.053 per share and began the final €500 million tranche of its €1.5 billion share-buyback programme.