IAG records powerful Q1 earnings amid cargo headwinds

International Airlines Group posted its Q1 results for 2026, which projects Revenue in the first quarter rose 1.9% to €7.18 billion, supported by continued strong demand across the company’s network and brands. Operating profit increased 77.3%, driven by revenue growth and the limited impact of the Middle East conflict on costs so far, while operating margin improved by 2.1 percentage points to 4.9%.

Luis Gallego, IAG Chief Executive Officer, said, “We are pleased to report a strong first quarter, in which revenue grew by 1.9% and profit grew by 77.3% to €351 million, reflecting continued strong demand for our networks and airline brands.”

The total revenue witnessed a hike of 1.9% as in 2026 the total revenue was recorded as €7.18 billion, whereas in 2025 it was €7.04 billion. Simultaneously, the operating profit in 2026 is €351 million however, in 2025, it was €198 million, a total jump of huge 77.3%.

The cargo revenue was registered at €275 million in 2026, meanwhile, it was €318 million in 2025, which marks a decline of 13.5% this year.

Cargo revenue stood at €275 million, down €43 million compared to 2025. Cargo volumes, measured in cargo tonne kilometres (CTKs), declined 7.7% year-on-year, while cargo yields calculated as cargo revenue per cargo tonne kilometre fell 6.3%.

The company said market yields had remained elevated during the first half of 2025 due to global supply chain disruptions and strong demand, but began to ease from the third quarter as rates stabilised following the Red Sea-related surge seen the previous year.

Cargo revenue was also impacted by the weaker US dollar, while performance in March was affected by flight cancellations to destinations in the Middle East. Despite these challenges, the Group continued to focus on high-yield and premium cargo flows, particularly across the Asia Pacific and India.

During the first quarter, Aer Lingus took delivery of one Airbus A321XLR, which was acquired without external financing and remains unencumbered.

The Group also exercised purchase options for 10 Airbus A320neo family aircraft scheduled for delivery in 2030, along with 10 Boeing 737 aircraft set for delivery in 2028 and 2029. The orders are intended to provide flexibility for short-haul fleet replacement and future growth, with allocation across the Group to be decided closer to delivery.