IAG Reports First Quarter 2026 Net Profit of €301 Million or €0.065 per Share
- Joe Breitfeller
- 5 hours ago
- 3 min read
IAG has reported a first quarter 2026 net profit of €301 million of €0.065 per share on a year-over-year increase in revenue of 1.9 percent to €7.2 billion. The company ended the period with €10.1 billion in cash, cash equivalents and interest-bearing deposits.
On Friday (May 8, 2026), the International Consolidated Airlines Group (IAG) reported their first quarter financial results for the period ending March 31, 2026. The Group reported a first quarter net profit of €301 million of €0.065 per share on a year-over-year increase in revenue of 1.9 percent to €7.2 billion. The company ended the period with €10.1 billion in cash, cash equivalents and interest-bearing deposits.
In Friday’s announcement, IAG’s Chief Executive Officer, Luis Gallego, said,
“We are pleased to report a strong first quarter, in which revenue grew by 1.9% and [operating] profit grew by 77.3% to €351 million, reflecting continued strong demand for our networks and airline brands. IAG is uniquely positioned to navigate the current headwinds created by the Middle East conflict thanks to our leading positions across diverse markets, strong brands, structurally high margins and strong balance sheet, as well as a strong track record of execution.
“We are actively managing the uncertainty created by the fuel price increase and its impact, taking the necessary action on yields, costs and capacity. We currently see no issues with fuel availability in our main markets, particularly as we benefit from our investment in fuel self-supply at our hubs.
“Whilst the impact of the higher fuel price will inevitably lead to lower profit this year than we originally anticipated, we are confident in our business model and strategy, which has made us one of the best-performing airline groups in the world, and which gives us the opportunity to prove our resilience. This confidence means we are on track to continue with the remaining €1 billion return of excess cash.”
During the first quarter, the Group’s affected network due to the Middle East conflict included the UAE, Qatar, Saudi Arabia, Bahrain, Israel, Jordan and Cyprus. A large part of this network was redeployed, including additional capacity on routes where there is now reduced seat supply due to fewer flights by Middle Eastern carriers. Some examples include Bangkok, Singapore and Male. British Airways has also announced additional flights for this summer on routes that now have more direct demand, such as India and Nairobi to the U.S., as well as an expected shift in demand later this year to alternative winter sun destinations like the Caribbean and Sri Lanka. Iberia and Vueling have both reallocated Tel Aviv capacity to domestic Spain routes.
While demand currently remains strong, IAG remains vigilant abut the upcoming winter 2026/27 season, particularly in regard to jet fuel hedging and availability. The Group is well hedged for the rest of the year at 70 percent, and as reflected in the Q1 2026 results, the company’s hedging strategy has protected the business from the shorter-term impact of the recent major increases in jet fuel prices. Given the strength of their supply chain and inventory, and in particular the self-supply arrangements they have invested in at their main hubs, IAG remains confident of jet fuel supply in their main markets throughout the summer.
IAG’s first quarter cargo revenue was €275 million, €43 million lower than that same period last year. Cargo volumes, measured in cargo ton kilometers (CTKs), were 7.7 percent lower than the previous year. Cargo revenue was further impacted by a weakened US dollar, while March performance was affected by cancellations to destinations in the Middle East. The Group continued to prioritize high-yielding and premium flows, particularly across Asia Pacific and India.
Other Group revenue declined €46 million compared to Q1 2025 to €680 million, largely driven by reduced third-party revenues from Iberia’s Maintenance, Repair and Overhaul (MRO) business. This was linked to a change in how the cost of certain components are charged. Previously, such costs were included in Iberia’s MRO contracts, but now these costs are charged directly to the airline customer by the manufacturer, thereby reducing MRO revenue.
The International Consolidated Airlines Group (IAG) is one of the world’s leading airline groups and has a combined fleet of nearly 600 aircraft. The Group’s airlines include Aer Lingus, British Airways, Iberia, Level and Vueling. The company’s other subsidiaries include IAG Loyalty, IAG Cargo, and IAG Global Business Services (GBS).
Source: International Consolidated Airlines Group (IAG) / LEI: 959800TZHQRUSH1ESL13
