Growing airline activity is translating into returns for IAG Group shareholders. The accounts for the first nine months show an increase in profit after taxes of 15.5%, reaching 2,703 million. Revenues improved by 4.9%, reaching 25,234 million despite a third quarter, the summer one, of flat growth (9,328 million). And operating profit, with 3,931 million, grew by 18.3% in the nine months. Cash generation and results have led to increased shareholder remuneration and the promise of an additional dividend.
At the meeting of the board of directors that approved the financial statements yesterday, a cash payment was made against the results of this 2025. The gross figure amounts to 0.048 euros per share (0.0389 euros net) and compares with 0.030 euros last year. The dividend will be distributed starting from December 1st.
IAG has indicated that total remuneration will increase this year in line with inflation compared to 2024. The group’s intention, declared before the CNMV, is to “resume the payment of approximately 50% of the annual dividend as an interim dividend after the third quarter results”. The complementary payment will be distributed “after its approval by the general meeting of shareholders of the Company”.
IAG shareholders should also expect additional remuneration once the current year’s results are published in February 2026. CEO Luis Gallego had insisted that the company was able to distribute the surplus resulting from strong demand and high performance from various airlines. IAG has practically completed its share buyback program for 1,000 million and Gallego anticipates this morning the aforementioned intention to “announce further shareholder returns to the market”.
This morning the group underlines cost control, with a 0.2% increase in unit costs in the summer if fuel is excluded, and an increase in operating profit in the third quarter of 2%, to 2,053 million. The operating margin in the months of greatest demand of the year was 22%, an improvement of 0.4 percentage points compared to that obtained a year ago. Looking at the current year to September 30, IAG achieves a margin of 15.2%.
With the year underway, the company which includes British Airways, Iberia, Vueling, Aer Lingus and Level, maintains its outlook for 2025. Flight bookings for these final months continue to fuel sales growth and “sustainable value creation is expected throughout the cycle”. IAG expects to end the year with an increase in offered capacity of 2.5%; Unit costs (excluding fuel) will have to increase by 3% and investments will approach 3.7 billion. The total cost of fuel is expected to be around 7.1 billion in 2025.
The overall liquidity position decreases by 1,900 million, to 11,442 million, just as the debt in September is lower than at the end of 2024, with 14,783 million (-2,562 million euros). Net leverage is 0.8x.
(Article in progress. There will be expansion)
