IAG, ES0177542018

IAG stock faces fuel pressure as UBS sees 2.4% capacity cut

Published on 11/04/2026 at 12:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IAG stock heads into third-quarter results with fuel costs and capacity in focus. Investors will watch fares, hedging and margin resilience on November 6.

Fuel costs put capacity in focus

UBS sees IAG reducing short-haul capacity in 2026 while several rivals expand.
Third-quarter results on November 6 will test fares, hedging and margin resilience.
Management commentary on bookings, costs and the outlook may shape the near-term investment case.

IAG, ES0177542018, Illustration mit AI erstellt.

International Airlines Group is heading into its third-quarter results on Friday, November 6, with higher jet-fuel costs and capacity discipline at the center of the investment case. TradingView News reported that analysts expect third-quarter operating profit of 1.81 billion euros, down from 2.08 billion euros a year earlier, while the group has raised fares and used fuel hedges to contain part of the pressure.

IAG stock traded at 5.12 euros on Lang & Schwarz at 12:02 CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of IAG stock.

Capacity discipline meets fuel pressure

UBS data cited by Proactive show IAG cutting short-haul capacity by 2.4% in 2026 while Ryanair, Lufthansa and easyJet add seats. IAG supplies 9.9% of the long-haul capacity in UBS's sample, but its long-haul growth is limited to 0.4%. Spain accounts for 39% of the group's 2026 capacity, compared with 36% in 2025, while the UK's share falls to 23% from 25%.

UBS argues that capacity cuts are preferable to expansion as jet-kerosene prices have risen by more than 130% this year. European airlines' fourth-quarter capacity growth is moderating to 2.2% on long-haul routes and 0.3% on short-haul routes, according to the same review.

Results will test pricing power

The November 6 release should give investors a fresh view of demand, fares, fuel protection and operating costs after the summer travel period. A profit outcome below the prior year would put greater emphasis on whether fare increases and hedging can protect margins without weakening demand.

IAG's investor-relations calendar lists the Q3 2026 results for November 6. Its latest annual figures showed 2025 revenue of 33.213 billion euros and operating profit before exceptional items of 5.024 billion euros, with the latter up 13.1% year on year, according to the IAG investor-relations page.

The wider Spanish equity market is tracked through the IBEX 35.