International Airlines Group (LSE:IAG) reported annual results on Friday that exceeded analyst expectations, supported by lower fuel expenses and sustained demand across its core transatlantic network, particularly for premium cabin travel.
The airline group, which owns British Airways, posted adjusted operating profit of €5.02 billion, up 3.5% year on year and above the €4.97 billion forecast compiled by LSEG analysts.
Revenue increased 3.5% to €33.21 billion, compared with €32.10 billion recorded in 2024.
Operating margin improved by 1.3 percentage points to 15.1%, while adjusted earnings per share rose 22.4% to 69.5 euro cents. Free cash flow totalled €3.1 billion, down from €3.6 billion a year earlier but still characterised by the company as a strong performance.
Return on invested capital (ROIC) also strengthened, reaching 18.5% compared with 17.3% in 2024.
Looking ahead, the group said it is “positively positioned for 2026.”
“The outlook for travel trends continues to be supportive, particularly in our core markets. We will continue to execute on our strategy, supported by our transformation programme,” it said.
IAG added that it intends to return €1.5 billion ($1.77 billion) of surplus cash to shareholders over the next 12 months, starting with a €500 million share buyback programme expected to be completed by the end of May 2026.
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