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International Consolidated Airlines (MX:IAGN)
:IAGN
Mexico Market
EarningsQ2 2026 Earnings Report

International Consolidated Airlines (IAGN) Q2 2026 Earnings Report

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MX:IAGN Q2 2026 EPS Results

Actual EPS$3.95
Consensus EPS$4.12
Beat/MissMissed by -$0.17
One Year Ago EPS$5.14

MX:IAGN Q2 2026 Revenue Results

Actual Revenue$339.58B
Expected Revenue$192.07B
Beat/MissBeat by +$147.51B
YoY Revenue Growth+3.98%

Earnings Announcement Details

QuarterQ2 2026
Date07/31/2026
TimeBefore Open
Conference CallFriday, July 31, 2026
MX:IAGN Upcoming Earnings
International Consolidated Airlines's next earnings date is estimated for November 6, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 31, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveys an overall positive but cautious tone: IAG delivered resilient H1 results with strong free cash flow, a materially improved balance sheet, and standout performance from IAG Loyalty, which collectively underpin confidence in achieving full-year targets. However, material headwinds—most notably a ~12.5% rise in fuel unit cost, Q2 margin compression, regional competitive pressure (impacting Aer Lingus, Vueling and Iberia), exceptional restructuring costs and FX drag—temper near-term performance. Management emphasized disciplined cost actions, hedging, capacity discipline and a pathway to restore margins, suggesting confidence that the business model and balance sheet strength will mitigate these challenges.
Company Guidance
IAG reiterated guidance to deliver a full‑year operating margin within its 12–15% target range despite headwinds, expecting to recover around 60% of the recent fuel increase through pricing and cost actions; they are ~57% booked for H2, ~70% hedged for the remainder of 2026 and ~40% hedged for 2027 (H1 hedging gains €769m), and expect 16 aircraft deliveries for the year (one slipped into 2027) with full‑year CapEx ~€3.4bn (longer‑term averages ~€4.9bn in 2027–28 and €5.6bn in 2029–31, reverting to ~€4.5bn pa after 2032). They flagged strong cash generation and balance‑sheet metrics (H1 free cash flow €2.905bn, net debt €4.7bn, net leverage 0.6x, gross leverage 1.8x), reaffirmed capital priorities (target net leverage <1.8x, gross 1.5–2.0x, ROIC 13–16%), commitment to a sustainable ordinary dividend (2025 total €441m, final €0.05/sh) and continuation of the €1.4bn excess cash return (≈€800m completed).
Resilient Revenue Growth and Demand
Group revenue grew 1.0% in H1 (Q1 +1.9%, Q2 +0.2%) driven by strong passenger demand, with passenger revenue up EUR 828m at constant currency and broad long-haul outperformance.
Strong Free Cash Flow and Balance Sheet Improvement
Generated free cash flow of EUR 2.905bn in H1 (up EUR 808m YoY); net debt reduced to EUR 4.7bn from EUR 5.9bn; net leverage 0.6x and gross leverage 1.8x, supporting dividend and excess cash returns (≈EUR 800m of EUR 1.4bn completed).
IAG Loyalty: High-Margin Growth
IAG Loyalty operating profit increased ~25% to GBP 239m (margin 19.3%, +3.4 pts YoY), with Avios issuance +50% and active members +9%; demonstrates capital-light earnings growth and strong margin contribution.
Hedging Gains and Fuel Recovery
Hedging program delivered EUR 769m of hedging gains in H1; management recovered ~60% of the fuel cost increase through pricing and cost actions; fuel hedges ~70% for remainder of 2026 and ~40% for 2027.
Regional Unit Revenue Strength
North Atlantic unit revenue +7.3% (strong premium/corporate demand), Latin America & Caribbean unit revenue +2.4% (capacity +5.3%), Asia Pacific unit revenue +6.2%; Rest of World routes saw large unit revenue uplift where capacity was constrained.
Cost Discipline and Transformation Savings
Non-fuel unit costs decreased 1.3% (including an FX tailwind), supplier unit costs improved 5.4% and ownership investments are targeted to drive longer-term productivity gains; transformation programs continue to deliver savings.

MX:IAGN Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 06, 2026
2026 (Q3)
5.90 / -
6.265―
2026 (Q2)
4.12 / 3.95
5.144-23.22% (-1.19)
2026 (Q1)
0.56 / 0.76
0.46363.16% (+0.29)
2025 (Q4)
3.12 / 3.10
2.63317.59% (+0.46)
2025 (Q3)
6.34 / 6.26
6.484-3.38% (-0.22)
2025 (Q2)
4.56 / 5.14
2.82881.90% (+2.32)
2025 (Q1)
0.05 / 0.46
-0.39218.75% (+0.85)
2024 (Q4)
2.27 / 2.63
1.99931.71% (+0.63)
2024 (Q3)
5.19 / 6.48
4.85133.67% (+1.63)
2024 (Q2)
3.22 / 2.83
4.095-30.95% (-1.27)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed