International Consolidated Airlines Group (IAG) Q4 2025 earnings summary

Executive summary

• Delivered record financial results for 2025, including all-time highs in operating profit (€5,024m), margin (15.1%), and return on invested capital (18.5%), driven by strong demand and operational improvements.

• Total revenue grew to €33,213m, up 3.5% year-over-year, with transformation initiatives and disciplined capital allocation underpinning sector-leading results.

• Achieved significant improvements in punctuality and customer satisfaction, with investments in operational and customer experience across all airlines.

• Announced €1.5 billion in excess cash returns to shareholders, an increase from the prior year’s €1 billion buyback, and dividend per share increased by 8.9%.

• Maintained a positive outlook, supported by robust demand and a resilient, diversified business model.

Financial highlights

• Record operating profit of €5,024 million, up €581 million year-over-year, with a 15.1% operating margin, 1.3 points higher than last year.

• Adjusted EPS rose 22.4% to 69.5 euro cents, with adjusted profit after tax up 17% to €3.3 billion.

• Free cash flow reached €3,146 million after €3.4 billion in capital investments.

• Net debt leverage at 0.8x, liquidity over €10 billion, and net debt reduced to €5,948 million.

• Three-year total shareholder return (TSR) of 255%.

Outlook and guidance

• Expecting capacity growth of around 3% in 2026, with continued strong demand in North and South Atlantic and Latin America.

• Non-fuel unit costs projected to decline by around 1% in 2026, with a 2% benefit from FX.

• CapEx to rise to €3.6 billion in 2026, with further increases to €4.9 billion (2027–2028) and €5.6 billion (2029–2031) as delayed aircraft deliveries materialize.

• Committed to maintaining net leverage below 1.8x and gross debt leverage between 1.5x–2x.

• Dividend for 2025 set at €448 million, with intention to grow in line with inflation and further excess cash returns planned.