- IAG reported an operating profit of €1.4bn for Q2 2026, down 16pc from €1.68bn a year earlier
- Fuel costs and emissions charges rose nearly 23pc in Q2 to €2.22bn
- IAG has trimmed its capacity outlook to flat from the previous less than 3pc growth forecast
- The company expects fuel costs between €8.3bn and €8.6bn for the full year
- IAG has reported being about 57pc booked for the second half of the year
Aer Lingus owner IAG reported an operating profit of €1.4bn for the second quarter, representing a 16pc decline from the previous year. The airline group has trimmed its 2026 capacity outlook to flat after soaring fuel costs and weaker travel demand linked to the Middle East conflict impacted results. The quarterly profit came in just ahead of analyst expectations, with IAG forecasting a slightly lower fuel bill than previously projected.
European airlines have struggled with spiralling fuel costs since the war began at the end of February, with IAG’s results underscoring pressure and uncertainty highlighted by Ryanair and EasyJet this month. Fuel costs and emissions charges climbed nearly 23pc in the second quarter to ‚Ǩ2.22bn, hitting all IAG airlines from March onwards. The company has reported being about 57pc booked for the second half of the year, with booked revenue in line with a year earlier.
Chief executive Luis Gallego has projected stability despite the challenges, citing exposure to different markets and diverse brands as providing resilience. IAG expects to offset about 60pc of its higher fuel bill through higher ticket prices and cost-cutting measures, with fuel costs for the year now estimated between €8.3bn and €8.6bn. Air France-KLM has projected a similar fuel bill of about €8.9bn for 2026. Core transatlantic routes have remained strong with growing capacity and strong premium bookings for British Airways.
Luis Gallego shared “Our strategy is working. Our exposure to different markets and our diverse brands and customer propositions are providing resilience.”
