International Airlines Group (IAG) has reiterated its guidance for the full year after its revenue remained flat at €9.3bn in Q3.

The airline group, which owns British Airways and Aer Lingus, found that its revenue fell slightly under its guidance range for the period, which was estimated to reach €9.5bn.

IAG said the flat revenue was driven by flat passenger revenue, and a reduction in cargo revenue offsetting an increase in other revenue.

In the three months to 30 September, IAG’s operating profit reached expectations, by increasing 2% year-on-year to €2.05bn, while its profit after tax dropped by 2.3% to €1.4bn.

Chief executive officer at IAG, Luis Gallego, said: "We delivered a strong performance in the third quarter and remain on track to deliver another year of growth in revenues, profit and shareholder returns.

"So far this year we have grown our operating profit by 18% and adjusted earnings per share by 27% and increased our interim dividend. Having nearly completed a €1bn share buyback, we intend to update the market about further shareholder returns when we report our 2025 full year results in February.

"We remain focused on long-term value creation for our shareholders, helping to deliver our financial ambitions through disciplined investment for the future to improve customer experience and operational efficiencies."

IAG said its outlook for the full year remains unchanged, and that it is on track to deliver another year of revenue and earnings growth. It added that its demand for travel remains strong and it is well positioned, but is being mindful of the macroeconomic and geopolitical backdrop.

Despite this outlook, shares in IAG fell by over 10%.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that investors should look further ahead to make a decision on IAG.

He concluded: "IAG’s steep ascent levelled off in the third quarter, as growth failed to growth failed to soar to the heights the market was expected. Mirroring a fellow airline, Air France-KLM yesterday, the miss stems from lower cargo revenues, with last year’s figures benefitting from increased volumes ahead of the US presidential election.

"But the bigger picture needs to be kept in mind - this was a tough quarter. Stepping back, revenues and earnings per share are still up 18% and 27% year-to-date, highlighting that the group’s strategy is working.

"The news landed poorly with shareholders this morning, with shares down nearly 8%. But investors should look to take a long-term view, with IAG remaining a cut above most of the competition operationally. A strong balance sheet and market position, generous shareholder returns, and plenty of growth levers make the valuation look attractive."

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