Luis Gallego, IAG Chief Executive Officer, said:
“We reported another year of exceptional performance in 2025, delivering for our customers with continued improvements in ontime performance and customer satisfaction. This sector-leading operational performance is translating into world-class financial results, with outstanding margins and superior return on capital. 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.
I want to thank all of our employees across IAG for their hard work and dedication, and I look forward to a year of further success in 2026.”
Highlights:
• IAG has delivered a record financial performance in 2025, driven by strong operational performance
• Revenue grew by 3.5% to €33,213 million (2024: €32,100 million)
• Operating profit before exceptional items grew by 13.1% to €5,024 million (2024: €4,443 million)
• Operating margin grew by 1.3 pts to 15.1%
• Adjusted earnings per share grew by 22.4% to 69.5 € cents per share
• Significant free cash flow of €3.1 billion (2024: €3.6 billion)
• Return on Invested Capital at 18.5% (2024: 17.3%)
Summary
• Market dynamics are compelling – secular long-term demand growth in our core markets and constrained supply
in a consolidating industry
• We are executing our strategy with an ambition to be the best in the world: for our customers, employees and shareholders
• Strong operational performance is continuing to deliver high free cash flow
• Disciplined capital allocation delivering sustainable margins, return on invested capital and shareholder returns
Disciplined capital allocation
• Very strong balance sheet: net leverage 0.8x; gross leverage 1.9x
• Investing in the business at high rates of return on invested capital: €3.4 billion spent on new aircraft, onboard product, customer
services, IT and property
• Building a track record of significant shareholder returns
• Attractive and sustainable dividend: 8.9% increase in total dividend per share for 2025
• Return of excess cash of €1.5 billion, starting with a €500 million share buyback, an increase from €1 billion announced in
February 2025
Executing on our strategy and our transformation programme
• Capacity increase of 2.4% delivering profitable growth
• Customer NPS increased by 6.9 pts to 29.5 pts
• On Time Performance increased by 4.6 pts to 82.4%
• IAG Loyalty issued 200 billion Avios, an increase of 13.1%, delivering a 20.5%* increase in profit
Outlook
• Executing our strategy and transformation will continue to deliver:
• revenue growth and earnings growth at high margins and high return on capital
• significant free cash flow leading to a stronger balance sheet
• rewards for our shareholders with sustainable dividends and we plan significant further excess cash returns in future
• Positive outlook for 2026 supported by compelling market dynamics and secular long-term demand
• Confident in creating value for our shareholders in the long term
