IAG Trims Short-Haul Capacity as Rivals Add Seats
UBS data shows IAG cutting short-haul capacity by 2.4% in 2026 while Ryanair, Lufthansa Group and easyJet add seats.
Updated on Nov. 3, 2026 in Air Travel
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IAG, owner of British Airways and Iberia, is cutting short-haul capacity by 2.4% in 2026, according to UBS data. Ryanair, Lufthansa Group and easyJet are adding seats over the same period.
Why it matters
The capacity shift affects which routes and fare options travelers in Europe will find in 2026 as rivals expand. UBS points to rising jet kerosene costs, which have climbed more than 130% this year, as the backdrop for airlines favoring capacity discipline.
UBS sample data puts IAG's 2026 short-haul capacity down 2.4%, against growth of 26.6% at Wizz Air and 1.8% at Ryanair. IAG supplies 9.9% of long-haul capacity in the sample, while Air France-KLM supplies 11.4%, and it is not yet clear how these shares will shift once the full schedule is set.
The players
IAG
IAG is the holding company that owns British Airways and Iberia, two of Europe's largest airlines.
UBS
UBS is a Swiss global financial services firm whose analysts publish airline capacity research.
Ryanair
Ryanair is Europe's largest low-cost airline, known for its high-frequency short-haul network.
Lufthansa Group
Lufthansa Group is a German aviation conglomerate that includes Lufthansa, Swiss and Austrian Airlines.
easyJet
easyJet is a British low-cost carrier with a large short-haul network across Europe.
The details
IAG is shifting its capacity mix, with Spain rising to 39% of its 2026 capacity from 36% in 2025 and the UK share falling to 23% from 25%. Its long-haul capacity is growing by only 0.4%, and Middle East exposure is just 1% of its total.
Timeline
October 2026: Seat capacity from the Middle East to Europe is down 9.4%.
2026: IAG cuts short-haul capacity by 2.4% while rivals add seats.
Q4 2026: European airline capacity growth moderates to 2.2% on long-haul routes and 0.3% on short-haul routes.
November 2026: Middle East to Europe seat capacity is projected to fall 12.7%.
December 2026: Middle East to Europe seat capacity is projected to fall 8.4%.
Travel Outlook
UBS capacity data for 2026 shows European carriers diverging, with IAG trimming short-haul seats while Wizz Air and Ryanair expand. Capacity growth is moderating into Q4 2026, at 2.2% on long-haul and 0.3% on short-haul routes, a slowdown that tracks the surge in jet fuel costs.
Travelers booking European short-haul flights for 2026 may find fewer seats on some IAG routes while Ryanair and easyJet add capacity. Booking early and comparing carriers on the same route can help when capacity is tightening on some networks.
The takeaway
Capacity is shifting toward low-cost carriers and away from some legacy networks, so flexible booking across airlines can protect your options. Watch seat availability on your preferred routes as schedules are finalized through 2026.
Further reading
For more on how carriers are adjusting their networks, see our Air Travel coverage.
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