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International Consolidated Airlines (IAGN) Q3 2026 Earnings Report

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MX:IAGN Q3 2026 EPS Results

Actual EPS
MXN 5.59
Consensus EPS
MXN 6.01
Beat/Miss
Missed by -MXN 0.42
One Year Ago EPS
MXN 6.38

MX:IAGN Q3 2026 Revenue Results

Actual Revenue
―
Expected Revenue
MXN 203.10B
Beat/Miss
―
YoY Revenue Growth
―

Earnings Announcement Details

Quarter
Q3 2026
Date
11/06/2026
Time
TBA
Conference Call
Friday, November 6, 2026
MX:IAGN Upcoming Earnings

International Consolidated Airlines's next earnings date is estimated for February 19, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q3 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 06, 2026|% Change Since:0.00%|
Earnings Call Sentiment|Positive

The call was predominantly positive. IAG reported record quarterly revenue, a sector-leading 17.7% operating margin, strong demand and bookings, resilient performance across all airlines, growing loyalty profits, a stronger balance sheet, increased shareholder returns and maintained full-year margin and free cash flow expectations. These strengths were partly offset by lower profit and EPS, substantially higher fuel and total unit costs, operational disruptions, Middle East-related capacity reductions, competitive pressure in some markets and aircraft delivery delays.

Company Guidance

Management expects full-year fuel recovery of over 80% across the group and over 100% at British Airways, a full-year operating margin of at least 12%, free cash flow of around EUR 3 billion, and completion of the EUR 1.5 billion share buyback program in 2026; it now expects 12 aircraft deliveries for the full year, compared to 16 previously, and CapEx of around EUR 3.1 billion. For 2027, it expects an increase of capacity of single digit, mid-single -- less than mid-single digit, expects nonfuel cost outlook to be more positive than the one in the second half of this year, and is around 45% hedged, including 61% at 1Q and 34% at 4Q. Q4 is 85% booked, Q1 bookings are very strong, and passenger RASK is expected to be above Q3.

  • Record Quarterly Revenue and Sector-Leading MarginQ3 revenue increased 4.5% to a record level, with positive yields in all markets. Operating profit was EUR 1,726 million at a 17.7% operating margin, while the first-nine-month operating margin was 13.5%.
  • Strong Revenue Performance Across BusinessesPassenger revenue increased by EUR 334 million, driven by strong yields across all markets, particularly long-haul. Cargo revenue increased by EUR 60 million as strong pricing more than offset lower volumes, and other revenue increased by EUR 81 million, reflecting IAG Loyalty and higher Iberia MRO engine activity.
  • Resilient Performance Across Operating CompaniesEvery IAG airline delivered a double-digit operating margin in Q3. Aer Lingus generated EUR 142 million of operating profit at a 17.4% margin; British Airways generated GBP 600 million at a 14.4% margin; Iberia generated EUR 452 million at a 19.6% margin; and Vueling generated EUR 257 million at a 23.8% margin, the highest in the group.
  • British Airways Revenue and Fuel Recovery StrengthBritish Airways unit revenue grew 5.8%, supported by strong North Atlantic and business traffic and commercial revenue-system transformation benefits. BA is on target to recover over 100% of its fuel cost increase this year, and its Q3 fuel-cost pass-through was around 75%.
  • Iberia and Aer Lingus Operational ProgressIberia capacity increased 4.4%, supported by the A321 XLR and redeployment of Middle East capacity into long-haul markets. Iberia airline-level nonfuel unit costs improved 0.3% despite higher-than-expected engine maintenance challenges. Aer Lingus unit revenue rose 2.1%, reflecting improved demand, particularly across the North Atlantic and transfer traffic.
  • Vueling Delivered the Group's Highest MarginVueling produced a 23.8% operating margin, the highest in IAG, while focusing its operation on core markets. Spanish domestic capacity grew 7.3%, and management said Vueling has approximately one-third of the Spanish domestic market, a deep network, strong punctuality and operating performance, and good service.
  • IAG Loyalty Continued to GrowIAG Loyalty operating profit increased 8% in the quarter. Underlying pre-HMRC profit rose GBP 20 million, or more than 13%, to GBP 171 million, with the core loyalty business up 20%.
  • Strong Unit Revenue and Regional DemandPassenger unit revenue increased 4.1%, or 4.3% at constant currency, while capacity declined 0.2%. North Atlantic unit revenue increased 11% on broadly flat capacity; Latin America increased 2.3%, or 3.4% at constant currency, on 5.4% capacity growth; Europe increased 2.3% despite a 1.2% capacity reduction; and Africa, Middle East and South Asia increased 13.2% on 19% lower capacity.
  • Asia Pacific and Domestic ResilienceAsia Pacific unit revenue increased 3.8% while capacity increased 9.3%, with business volume and direct-service demand supporting growth. Domestic unit revenue was flat despite a 9.7% capacity increase, which management described as resilient.
  • Robust Forward Demand and Corporate TravelManagement said demand remains very strong, with 85% of expected Q4 bookings already booked and Q1 bookings also very strong. Corporate travel continued to perform strongly, with finance and technology particularly positive. At British Airways, Q3 RASK increased 5.8%, business revenue was up about 14%, and management expects the trend to strengthen in Q4 and continue into Q1.
  • Cost Transformation Mitigated Underlying Cost InflationReported nonfuel unit costs increased 3.4%, but underlying nonfuel CASK increased only around 0.5% after accounting for lower planned capacity, higher third-party MRO activity, one-off disruption events and FX. Management cited transformation programs, tighter recruitment and resource controls, supplier-spend optimization, technology and AI usage, and reduced discretionary spending as mitigating actions.
  • Strong Balance Sheet and Cash GenerationNet debt declined to EUR 4.2 billion from EUR 4.7 billion at half year and EUR 5.9 billion at the end of last year. Net leverage declined 0.6x, while gross leverage was 1.9x. Management expects 2026 free cash flow to be around EUR 3 billion and said it is not contemplating a negative free cash flow scenario in 2026 or 2027.
  • Shareholder Returns IncreasedIAG announced a 10% increase in the interim dividend per share and is continuing its EUR 1.5 billion share buyback program. Management confirmed that the 2026 buyback program is being completed.
  • Full-Year Margin and Free Cash Flow Outlook MaintainedManagement reiterated expectations for a full-year operating margin of at least 12% and significant free cash flow, while continuing to invest in the business and maintain a strong balance sheet.
  • Lower Full-Year Capital Expenditure PlanFull-year CapEx is now expected to be around EUR 3.1 billion, compared with the EUR 3.4 billion guidance provided at the half year. Management said it is proactively managing fleet and non-fleet CapEx to drive higher returns and prioritize investments.
  • Fleet, Product and Digital Investment ContinuesIAG remains committed to disciplined investment in new, more efficient aircraft, customer initiatives and digital investments. Starlink installation is targeted to reach at least 50% of the long-haul fleet by year-end; British Airways' new Club cabin retrofit is 82% complete at Heathrow and is expected to reach 94% by mid-next year; Iberia retrofits are planned to start in 2027; and Aer Lingus plans new business-class and premium-economy retrofits next year.
  • Iberia MRO Engine Business ExpansionIAG Engine Tech received investment from ITOCHU following Iberia Maintenance's award of a LEAP engine maintenance license. The business plans to invest EUR 400 million, increase annual engine management from 200 to at least 350 engines, and hire around 400 mechanics and engineers.
  • Strong Hedging and Fleet Funding PositionApproximately 45% of 2027 fuel needs are hedged, primarily through gas oil and jet fuel rather than Brent. Management said its hedging policy remains strong and stable, with some flexibility for opportunistic actions. It also said fleet funding markets showed no specific concerning changes and that IAG is increasing the unencumbered proportion of its aircraft.
  • Potential Consolidation OpportunityManagement said weakness in some airlines could create consolidation opportunities and that some companies are already having discussions with IAG about potentially doing something together. IAG said it would explore any possible option.

MX:IAGN Earnings History

MX:IAGN earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 19, 20272026 (Q4)2.06-3.15――
Nov 06, 20262026 (Q3)6.015.596.38-12.45% (-0.79)
Jul 31, 20262026 (Q2)4.204.105.24-21.80% (-1.14)
May 08, 20262026 (Q1)0.570.770.4763.16% (+0.30)
Feb 27, 20262025 (Q4)3.183.152.6817.59% (+0.47)
Nov 07, 20252025 (Q3)6.466.386.6-3.38% (-0.22)
Aug 01, 20252025 (Q2)4.645.242.8881.90% (+2.36)
May 09, 20252025 (Q1)0.050.47-0.4218.75% (+0.87)
Feb 28, 20252024 (Q4)2.312.682.0431.71% (+0.65)
Nov 08, 20242024 (Q3)5.296.604.9433.67% (+1.66)

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