North and South Atlantic demand keeps IAG upbeat

LONDON - IAG reports a decline in third-quarter 2026 operating profit despite higher revenues. Rising fuel costs and operational disruption took a toll on summer performance of the airline group around British Airways, Iberia and Aer Lingus - with strong demand on Atlantic routes pushing yields.

Operating profit fell by 15.9 percent to 1.73 billion EUR in the three months to September 30, while revenue increased by 4.5 percent to 9.74 billion EUR, IAG said.

IAG blamed higher fuel prices and a number of one-off operational disruptions that had affected its performance.

Despite earnings pressure and elevated ticket prices, IAG saw strong demand across its network, particularly on North and South Atlantic routes.

Passenger unit revenue in the North Atlantic increased by 11 percent, while capacity in the region remained broadly unchanged, IAG said, while capacity to Africa, the Middle East and South Asia fell by 19 percent, reflecting the suspension of flights to several destinations amid the ongoing Iran conflict and regional instability.