(Il Sole 24 Ore Radiocor) - Milano, 8 mag - IAG said that demand for travel continues to be robust in its main markets and it has seen resilient booked revenue for the second quarter at 80%, which is in line with historical levels.

Capacity will be lower than the 3% increase guided at full year results in February as a result of actions taken already. At present it expects to increase capacity by 1% in the second quarter and by 2% in the third. It is continuing to review its longer term capacity plans.

While the first quarter was relatively unaffected by the Middle East conflict, IAG expects it to have a more substantial impact throughout the rest of the year as the increase in the fuel cost starts to manifest itself. As a result, it expects its profit to be lower than originally anticipated at the beginning of the year.

Based on the fuel curve as at May 5, 2026, including its hedging positions and sustainability costs, fuel cost would be 9.0 billion euros.

IAG expects to recover around 60% of the higher fuel cost during this year through revenue and cost management actions, reflecting the mix of markets in which it operates, the benefits of its transformation programme and its investment in modern, efficient aircraft across the portfolio.

IAG said it continues to expect to generate significant free cash flow in the year but, given the impact of the Middle East conflict, for it to be less than the 3 billion euros guided at full year results in February.

Capex is now expected to be around 3.5 billion euros, down from an earlier guidance of 3.6 billion euros.

IAG said it was track to continue with the remaining 1 billion euros of excess cash returns through to the end of.

February 2027.

(RADIOCOR) 08-05-26 08:57:28 (0177) 5 NNNN