The International Airlines Group (IAG) reported a modest 2 per cent rise in third-quarter profits to €2.05 billion, citing “softness” in the US market as revenue growth stalled.
The parent company of British Airways, Iberia, Aer Lingus, LEVEL and Vueling posted flat year-on-year revenue of €9.33 billion for the three months to 30 September.
IAG became the latest European carrier to note a slowdown in transatlantic travel, following similar warnings from Air France–KLM and Lufthansa in their recent quarterly updates.
Passenger revenue per available seat kilometre (ASK) fell 2.4 per cent from a year earlier, driven by a 7.1 per cent decline on North Atlantic routes. The group said the dip in US point-of-sale demand was “expected,” with stronger performance seen in the South Atlantic and Asia-Pacific markets.
In Europe, ticket prices were lower, which IAG attributed to “a combination of high growth by British Airways and more competitive markets elsewhere.”
Group capacity rose 2.4 per cent year on year, while load factor slipped 1.3 percentage points to 89.9 per cent.
Among individual carriers, Aer Lingus and Iberia both posted higher quarterly profits, at €170 million and €500 million, respectively. British Airways earned £812 million, down £18 million from the same period last year, while Vueling’s profits fell €20 million to €272 million.
Despite the mixed results, IAG reaffirmed its full-year outlook, saying it remains “on track to deliver another year of revenue and earnings growth,” with Q4 bookings “positively positioned.”
The group also announced on Thursday (7 November) a partnership with Starlink to roll out high-speed Wi-Fi across its airlines’ fleets starting in 2026.
