International Airlines Group reported a first-half net profit of €1.03 billion, down roughly 20% from a year earlier, as fuel costs and emissions charges surged nearly 23% in the second quarter amid the Middle East conflict. The group trimmed its 2026 capacity outlook to flat and expects annual fuel expenses between €8.3 billion and €8.6 billion, though it plans to offset about 60% of the increase through higher fares and cost cuts.
Revenue edged up 1% to €16.06 billion over the six months, while the group carried 57.9 million passengers, a marginal increase. British Airways posted higher earnings, but Iberia's operating profit fell 6.7% and Aer Lingus swung to a €34 million loss. The results included €149 million in exceptional restructuring charges tied to job-cut programmes at Iberia and British Airways.
The group reduced net debt to €4.69 billion by the end of June. IAG has ruled out bidding for easyJet and exited the TAP Air Portugal privatisation process.