IAG unveils 1.5bn share buyback after record profits at British Airways owner

"Market dynamics are compelling, long-term demand growth in our core markets and constrained supply in a consolidating industry. IAG said market conditions remained supportive, citing long-term demand growth across its core transatlantic and European markets, combined with constrained aircraft supply as manufacturers struggle with delivery delays."

"The group has moved decisively from a crisis-era balance sheet to financial strength. Just over three years ago, IAG was carrying close to €20 billion of debt as international travel collapsed under Covid restrictions. Since then, it has restored profitability and significantly reduced leverage."

"The improvement was driven by stronger pricing and higher revenue per passenger rather than volume growth. Group revenues climbed 3.5 per cent to €33.2 billion, despite passenger numbers edging down slightly to 121.5 million compared with the previous year."

International Airlines Group, owner of British Airways, Iberia, Aer Lingus, and Vueling, achieved record annual profits of €3.34 billion in 2025, representing a 22 percent increase. Group revenues rose 3.5 percent to €33.2 billion, though passenger numbers slightly declined to 121.5 million. The profit growth resulted from stronger pricing and increased revenue per passenger rather than volume expansion. In response, IAG announced an 8.9 percent dividend increase and a €1.5 billion share buyback program, following a €1 billion buyback completed previously. The company cited supportive market conditions, long-term demand growth in transatlantic and European markets, and constrained aircraft supply from manufacturing delays. IAG has transformed from pandemic-era debt of €20 billion to financial strength and significantly reduced leverage.

Read at Business Matters