IAG profit fell to €1.23 billion in the July-September period. That compares with €1.4 billion for the third quarter of 2025. The group blamed higher jet fuel prices for most of the squeeze.
Why Did IAG’s Profit Fall to €1.23 Billion?
IAG said “strong pricing was offset by lower capacity, the impact of one-off disruption events, and, in particular, higher jet fuel prices.” The profit gap works out to about €170 million against the year-earlier quarter.
IAG chief executive Luis Gallego called the period a “resilient quarter… despite the very high price of jet fuel and a number of one-off disruption events.”
How Much Did Jet Fuel Costs Rise for IAG?
Fuel costs rose by more than 30% in the quarter. Revenue still climbed 4.5% to €9.74 billion, so higher sales did not carry through to profit.
- Profit after tax: €1.23 billion (US$1.37 billion), down from €1.4 billion in the third quarter of 2025
- Revenue: up 4.5% to €9.74 billion
- Jet fuel costs: up more than 30%
What Cut IAG’s Flight Capacity This Quarter?
IAG said flight capacity was hit by cancellations due to the conflict in the Middle East. Aircraft availability was also constrained by engine issues and air traffic control disruption.
Britain’s air traffic control service suffered a technical glitch in September that sparked chaos. The group’s capacity cuts, plus that disruption, reduced the revenue it could earn from its fleet.
Is IAG’s Fuel Squeeze Worth Monitoring for Malaysian Investors?
The source article does not give a Bursa Malaysia listing or stock code for IAG, so the read-across is for airline stocks in general. Fuel costs and capacity disruption are the two numbers worth tracking in any airline’s results.
IAG’s other brands include Irish airline Aer Lingus and Spanish carrier Vueling. Malaysian readers screening airline names can use the AI Stock Analysis for Malaysians tools to compare fuel and margin trends across companies.
Key Takeaways
- IAG profit after tax fell to €1.23 billion in the July-September period, from €1.4 billion in the third quarter of 2025.
- Jet fuel costs rose more than 30% in the quarter, the main pressure on earnings.
- Revenue climbed 4.5% to €9.74 billion, showing pricing held up.
- Capacity was cut by Middle East cancellations, engine issues and air traffic control disruption.
Disclaimer: This article is for general information only and is not a recommendation to buy, sell or hold any security. Do your own research and consider your own financial situation before making any investment decision.
Frequently Asked Questions
What was IAG’s profit in the July-September period?
IAG’s profit after tax fell to €1.23 billion (US$1.37 billion) in the July-September period. That compares with €1.4 billion for the third quarter of 2025.
Why did IAG’s profit drop?
Higher jet fuel prices were the main factor, with fuel costs up more than 30% in the quarter. IAG also cited lower capacity and one-off disruption events.
How much did IAG’s revenue grow?
IAG’s revenue climbed 4.5% to €9.74 billion in the July-September period. Revenue growth did not offset the higher fuel costs at the profit line.
Is IAG listed on Bursa Malaysia?
The source article does not mention a Bursa Malaysia listing or stock code for IAG. Check the company’s own investor disclosures to confirm where its shares trade.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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