IAG Revenues Rise, but Profits Tumble by 20%

Airline group IAG has posted a net profit of €1bn for the first half of 2026 - almost 21% down on a year-on-year basis -competition, geopolitical unrest and increased operational costs for the slump.

The group - which owns Aer Lingus, British Airways, Iberia and Vueling - did, however, see revenues increase by 1% to just over €16bn, and stressed that it remains confident about its future prospects.

IAG chief executive, Luis Gallego, said: “With these results IAG has again demonstrated that its excellent fundamentals are supporting continued value creation for our shareholders, despite the impact of the crisis in the Middle East and wider geopolitical events.

“We are well-positioned to deal with these near-term headwinds with a diverse portfolio of world-class brands in large and attractive markets; industry-leading margins; significant free cash flow and a strong balance sheet; and attractive shareholder returns.

“Our long-term transformation programme has created the resilience that we are now benefitting from - products and services that our customers value, efficient and punctual operations and a low cost base. Each of our businesses is very focused on continuing to execute their transformation plans to deliver further long-term benefits.

“We remain confident in our business model and strategy that has made us one of the best-performing airline groups in the world.”