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IAG Sets Record 2025 Profit, Announces €1.5 Billion Buyback and Dividend

Management cites robust premium demand with improved North Atlantic trading into year-end.

Overview

  • IAG reported a record €5.0 billion operating profit for 2025, up 17.3% on 3.5% revenue growth, with British Airways and Iberia delivering 15.2% and 16.2% margins.
  • The board approved a €1.5 billion share buyback plus a €0.05 final dividend, lifting excess cash returns to €2.85 billion over three years.
  • Executives pointed to strong premium-cabin trading, an improving late‑year trend on the North Atlantic, and tailwinds from lower fuel costs and favorable foreign exchange.
  • Capacity increased 2.4% in 2025 and the group guides roughly 3% additional growth in 2026.
  • Iberia and Aer Lingus began flying A321XLR jets that the group says are exceeding expectations, supporting profitable year‑round routes to secondary North American cities, while a potential TAP deal remains contingent on value‑accretive terms.