Luis Gallego, IAG Chief Executive Officer, said: “We delivered a strong performance in the third quarter and remain on track to deliver another year of growth in revenues, profit and shareholder returns. So far this year we have grown our operating profit by 18% and adjusted earnings per share by 27% and increased our interim dividend. Having nearly completed a 1 billion euros share buyback, we intend to update the market about further shareholder returns when we report our 2025 full year results in February. We remain focused on long-term value creation for our shareholders, helping to deliver our financial ambitions through disciplined investment for the future to improve customer experience and operational efficiencies.”
During the third quarter, IAG reported an operating profit of 2,053 million euros, a 2% increase compared with 2,013 million euros in Q3 2024. Operating margin reached 22%, up 0.4 points year-on-year. Passenger revenue increased by 177 million euros at constant currency, despite a slight decline in reported PRASK. Total revenue remained stable at 9,328 million euros.
Cost discipline remained a priority, with non-fuel unit costs rising by 0.2%, in line with expectations. The Group also announced an interim dividend of 0.048 euros per share, while a 1 billion euros share buyback programme launched in February 2025 is now nearly completed.
IAG continues to maintain a strong balance sheet, with net leverage reduced to 0.8x as of 30 September 2025, giving the Group financial flexibility for future investments and capital allocation. Adjusted earnings per share increased by 27% for the nine months to 30 September 2025.
Looking ahead, the Group’s guidance for the full year remains unchanged. IAG expects another year of revenue and earnings growth, margin improvement and strong shareholder returns, supported by robust travel demand.
“Our revenue is positively booked for the fourth quarter,” the Group stated, highlighting a positive short-term outlook despite the broader macroeconomic and geopolitical environment.
For 2025, IAG plans a full-year capacity increase of around 2.5%. Non-fuel unit costs are expected to rise by approximately 3%, while capital expenditure for the year is forecast at 3.7 billion euros. Total fuel cost is expected to reach 7.1 billion euros, based on current jet fuel prices and exchange rates.
Tags: Luis Gallego, IAG
