IAG profit slumps 20.6% on fuel costs as Spanish banks post H1 gains

IAG squeezed by kerosene costs

IAG, owner of Iberia and British Airways, reported a 20.6% drop in net profit to €1,033 million for the six months to June, as fuel costs jumped 12.3% year-on-year due to the Middle East conflict. Revenue edged up 1% to €16,064 million, with passenger revenue at €14,082 million, but operating profit fell 14.4% to €1,608 million. The group carried 58 million passengers, a 0.2% increase, and occupancy rose 0.9%. IAG has hedged 70% of its kerosene needs for the rest of 2026, and as of 27 July the estimated annual fuel bill stood at €8,600 million, down €300 million from end-June and €400 million from May. The company said it had recovered about 60% of the fuel cost increase through revenue growth and cost cuts. Results missed Bloomberg consensus estimates, which had forecast net profit of €1,203 million and revenue of €16,406 million. IAG shares fell 2.10% at the open to €5.006.

The company faces short-term challenges with solidity thanks to a diversified portfolio of top-tier brands present in broad and attractive markets, as well as industry-leading margins.

Banks deliver steady growth

Unicaja posted a 7.1% rise in net profit to €361 million, driven by a 2.5% increase in gross income to €1,085 million. Net interest income grew 1.7% to €755 million, and net fees advanced 2.6% to €269 million. The bank highlighted a 39.5% surge in new mortgage production to €2,093 million. Its shares jumped 3.22% to €3.369. Ibercaja reported a 2.1% increase in net profit to €184 million, with business volume reaching a record high of nearly €114,000 million, up 5.4%. Recurring income rose 8.6% to €677 million, and net interest income climbed 11.1% to €345 million. The bank’s ROTE reached 12.6%, exceeding its medium-term target by more than 2.5 percentage points.

Amadeus weathers air traffic slowdown

Travel technology firm Amadeus saw net profit slip 3.7% to €700.2 million, as the Middle East conflict weighed on air traffic volumes from March onward. Revenue grew 2.3% to €3,334.9 million, with airline IT solutions up 6.2% and hotels and other solutions up 5.3%. Adjusted EBITDA rose 4.9% to €1,011.5 million. CEO Luis Maroto said the slowdown would have a “limited” effect on the group’s outlook, citing business diversification. Last week, Amadeus completed the acquisition of Idemia Public Security for €1,200 million plus a potential earn-out of up to €150 million, financed by a syndicated bridge loan.

This slowdown will have a limited effect on the group’s outlook.

Ezentis builds order book

Infrastructure and technology group Ezentis said its contracted project portfolio exceeded €36 million as of 30 June, bolstered by new awards in critical infrastructure, installations, and tech solutions. Key wins included a €3.6 million contract from Aena to renew the TETRA radio system at Madrid-Barajas airport, and over €5 million in installation contracts for a hospital in Tarragona, a sports centre in Ripollet, and a Sanitas residence in Sabadell. CEO Anabel López Porta said the portfolio milestone “supports the company’s growth model and provides solid visibility to continue creating value sustainably.” Ezentis will publish full H1 financials before 20 September.

Exceeding 36 million euros in portfolio is a backing for the company’s growth model and provides solid visibility to continue creating value sustainably.