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ReutersJoanna Plucinska, Shashwat Awasthi

IAG keeps 2026 capacity flat as British Airways benefits from Middle East rerouting and Aer Lingus weighs on profits

International Airlines Group said British Airways captured stronger premium demand as business travelers avoided the Middle East, while the conflict constrained first-half capacity. Fuel costs and an Aer Lingus loss pressured earnings, prompting IAG to hold group capacity flat for 2026 as Vueling pursues savings through its 737 Max transition.

2026-07-31T00:19:18.180310-07:00

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IAG keeps 2026 capacity flat as British Airways benefits from Middle East rerouting and Aer Lingus weighs on profits

International Airlines Group said British Airways captured stronger premium demand as business travelers avoided the Middle East, while the conflict constrained first-half capacity. Fuel costs and an Aer Lingus loss pressured earnings, prompting IAG to hold group capacity flat for 2026 as Vueling pursues savings through its 737 Max transition.

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