International Consolidated Airlines Group (IAG) Q4 2025 earnings summary

Executive summary

• Delivered record financial results for 2025, including all-time high operating profit of €5,024m, 15.1% margin, and 18.5% ROIC, driven by strong demand and operational improvements.

• Total revenue grew to €33,213m, up 3.5% year-over-year, with significant improvements in punctuality and customer satisfaction.

• Announced increased shareholder returns, including a €1.5bn excess cash return, higher dividends (up 8.9%), and a strong balance sheet.

• Transformation initiatives and disciplined capital allocation underpin sector-leading results.

• Maintained a positive outlook, with robust demand across all markets.

Financial highlights

• Record operating profit of €5,024m, up €581m year-over-year, with a 15.1% operating margin (up from 13.8%).

• Adjusted EPS rose 22.4% to 69.5 euro cents; adjusted profit after tax up 17% to €3.3bn.

• Free cash flow reached €3,146m after €3.4bn in capital investments.

• Net debt leverage at 0.8x, liquidity over €10bn, and gross debt leverage at 1.9x after €1.6bn debt repayment.

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

Outlook and guidance

• Capacity (ASK) expected to grow by ~3% in 2026, with continued strong demand in North and South Atlantic and Latin America.

• Non-fuel unit costs projected to decrease by ~1% in 2026, benefiting from FX and transformation initiatives.

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

• Guidance for excess cash returns widened to 1x-1.5x net debt leverage, maintaining strong shareholder distributions.

• Committed to sustainable dividends and further significant excess cash returns.