International Consolidated Airlines Group (IAG) Q2 2026 earnings summary

Executive summary

• Delivered robust H1 2026 results with revenue up 1.0% year-over-year to €16,064m, despite industry headwinds from the Middle East crisis, rising fuel costs, and lower capacity.

• Maintained sector-leading margins and strong free cash flow, supported by transformation programs, disciplined cost control, and a diverse brand portfolio.

• Ongoing investment in fleet, digitalization, customer experience, and sustainability initiatives to drive future growth.

• Paid 2025 final dividend and continued excess cash return to shareholders.

Financial highlights

• H1 2026 revenue grew 1.0% to €16,064m; operating profit before exceptional items was €1,757m (10.9% margin, down from 11.8%).

• Passenger revenue increased by €828m, while cargo revenue declined by €23m (down 9.4%) due to route suspensions.

• Profit after tax before exceptional items was €1,146m, down 11.9% year-over-year.

• Adjusted EPS decreased by 10.9% to 23.6 cents, aided by share buybacks.

• Free cash flow reached €2,905m, up €808m year-over-year; net debt reduced to €4,692m, net leverage at 0.6x.

Outlook and guidance

• Booked 57% of expected H2 revenue, in line with last year; long-haul demand remains strong, short-haul more competitive.

• Expect to recover around 60% of fuel price increases through pricing and cost actions.

• Full-year operating margin expected within 12%-15% target range; capacity (ASK) for FY 2026 expected to be flat versus 2025.

• CapEx for 2026 guided at €3.4bn, with 16 aircraft deliveries, majority unencumbered.