International Airlines Group delivered its strongest-ever financial performance in 2025, with operating profit surging 13.1% to over €5 billion as robust demand for air travel and an ongoing transformation programme continued to bear fruit.
Revenue at the parent company of British Airways, Iberia, Aer Lingus, and Vueling rose 3.5% to €33.2 billion, while adjusted earnings per share jumped 22.4% to 69.5 euro cents. The group’s operating margin widened by 1.3 percentage points to 15.1%.
Iberia was the standout performer, posting a 16.2% margin, with British Airways close behind at 15.2%. Both airlines benefited from improving punctuality and rising customer satisfaction scores, with group on-time performance up 4.6 points to 82.4%.
IAG pointed to a combination of strong demand for travel and constrained industry supply, with aircraft delivery delays from manufacturers limiting competitor growth. The group grew its own capacity by 2.4% in the year, deploying new A321XLR aircraft on transatlantic routes from both Dublin and Madrid.
Luis Gallego, IAG Chief Executive Officer, said “Execution of our strategy and transformation programme is creating value for shareholders, with adjusted EPS growth of 22.4% and, in line with our disciplined capital allocation framework, we have grown the dividend per share by 8.9% and are announcing today a further return of excess cash of €1.5 billion.”
“We are confident as we look to the future, with compelling market dynamics, long-term secular growth and a clear plan to leverage our business model and deliver our strategy.”
Trading was generally firm across all markets, with Asia Pacific performing particularly well, though there was some softness in the US leisure segment during the third quarter.
The North Atlantic remains an area of strength for IAG, with its joint business partners holding 49% market share. Though the real growth story is Latin America, where Iberia expanded frequencies and launched new routes to Brazil.
IAG proposed a final dividend of €228 million, bringing the full-year payout to €448 million — an 8.9% increase per share. On top of that, it announced a fresh €1.5 billion return of excess cash, starting with a €500 million share buyback, up from the €1 billion programme launched in February.