International Airlines Group (IAG) reported a 15.9% fall in third-quarter operating profit before exceptional items to €1.726 billion, as a sharp rise in fuel costs and operational disruption outweighed revenue growth. Revenue increased 4.5% to €9.744 billion in the three months to 30 September 2026, while the operating margin narrowed to 17.7% from 22.0% a year earlier.
Fuel costs reduced operating profit by €565 million. Fuel unit costs rose 30.7%, with higher commodity prices linked to the Middle East conflict partly offset by hedging. Non-fuel unit costs increased 3.4%, reflecting disruption and capacity below plan, including air-traffic-control and Heathrow baggage-handling problems.
IAG, the parent of British Airways, Iberia, Vueling and Aer Lingus, maintained its full-year 2026 operating-margin guidance of at least 12%. It now expects capacity to be slightly below 2025 levels and total fuel costs of about €8.9 billion, based on fuel-price and foreign-exchange assumptions as of 3 November. The group reported that 85% of expected fourth-quarter revenue was booked and raised its interim dividend per share by 10%.