IAG's operating profit rose 3.5% to €5.02 billion, beating analyst expectations
Revenue increased 3.5% year-over-year to €33.21 billion
The company plans to return €1.5 billion to shareholders over the next 12 months
IAG is positively positioned for 2026 with improved operating margins and return on invested capital
📖 Full Retelling
International Airlines Group (IAG), the parent company of British Airways, reported stronger-than-expected annual profit on Friday, February 27, 2026, driven by lower fuel costs and resilient demand on its key transatlantic routes, particularly in premium cabins. The group's adjusted operating profit rose 3.5% to €5.02 billion, surpassing analysts' expectations of €4.97 billion according to LSEG polls. Revenue also increased by 3.5% year-over-year to €33.21 billion, up from €32.10 billion in 2024. IAG's operating margin expanded by 1.3 percentage points to 15.1%, while adjusted earnings per share climbed 22.4% to 69.5 euro cents. Despite a slight decrease in free cash flow from €3.6 billion in 2024 to €3.1 billion in 2025, the company still described this amount as significant, with return on invested capital improving to 18.5%, compared with 17.3% in the previous year. Looking ahead, IAG expressed positive sentiment for 2026, stating they are 'positively positioned' for the upcoming year and plan to return €1.5 billion ($1.77 billion) of excess cash to shareholders over the next 12 months, beginning with a €500 million share buyback to be completed by the end of May 2026.
🏷️ Themes
Airline industry performance, Corporate financial results, Shareholder returns
Share repurchase, also known as share buyback or stock buyback, is the reacquisition by a company of its own shares. It is an alternative way of returning money to shareholders than dividends. After a repurchase event, the company's stock price is now proportionally higher because of the smaller num...
Anglo-Spanish multinational airline holding company
International Consolidated Airlines Group S.A., trading as International Airlines Group and usually shortened to IAG, is a British-Spanish multinational airline holding company with its registered office in Madrid, Spain, and its corporate headquarters in London, England. It was formed in January 20...
British Airways plc (BA) is the flag carrier of the United Kingdom. It is headquartered in London, England at Waterside, near its main hub at Heathrow Airport.
The airline is the second largest UK-based carrier, based on fleet size and passengers carried, behind easyJet.
In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses.
Operating income and operating profit are sometimes used as a synonym for EBIT w...
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Netflix declines to match Paramount Skydance bid for Warner Bros Gold prices steady near $5,200/oz; strong Feb gains on tap This is where Deutsche Bank sees silver prices ending the year Nvidia CEO Huang said SaaSpocalypse narrative wrong, sees ’deep misunderstanding’ (South Africa Philippines Nigeria) IAG operating profit climbs in 2025, topping estimates By Vahid Karaahmetovic Author Vahid Karaahmetovic Earnings Published 02/27/2026, 02:50 AM Updated 02/27/2026, 02:55 AM IAG operating profit climbs in 2025, topping estimates 0 ICAG -0.83% Investing.com -- International Airlines Group reported stronger-than-expected annual profit on Friday, helped by lower fuel costs and resilient demand on its key transatlantic routes, particularly in premium cabins. The parent of British Airways saw its adjusted operating profit rise 3.5% to €5.02 billion, beating the 4.97 billion euros expected by analysts polled by LSEG. Revenue rose 3.5% year over year to €33.21 billion, up from €32.10 billion in 2024. Get InvestingPro for a deeper dive into corporate earnings The group’s operating margin expanded by 1.3 percentage points to 15.1%, while adjusted earnings per share climbed 22.4% to 69.5 euro cents. IAG also generated free cash flow of €3.1 billion, down from €3.6 billion in the prior year but still described as significant. Return on invested capital improved to 18.5%, compared with 17.3% in 2024. Looking ahead, the company 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 said on Thursday it plans to return €1.5 billion ($1.77 billion) of excess cash to shareholders over the next 12 months, beginning with a €500 million share buyback to be completed by the end of May 2026.
