Growing airline activity is translating into returns for shareholders. The accounts in 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, of flat growth (9,328 million, with stable revenues from travelers and lower revenues from cargo). And operating profit, with 3,931 million, rose 18.3% in the nine months. have made it possible to increase shareholder remuneration and the promise of an additional dividend.
At the meeting of the board of directors that approved the accounts yesterday, a cash payment was made on account of the results of this 2025. The gross figure amounts to 0.048 euros per share (0.0389 euros net) and is compared to 0.030 euros last year. This dividend will be distributed starting December 1.
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 following the results of the third quarter.” The complementary payment will be distributed “after its approval at the general meeting of shareholders of the Company.”
IAG shareholders must also expect additional remuneration once the results of the current year are published, back in February 2026. The CEO, Luis Gallego, had been insisting that the company was in a position to distribute the surplus derived from strong demand and high performance of the different airlines. IAG has practically completed its share buyback program for 1,000 million and Gallego anticipates this morning the aforementioned intention to “announce additional returns to shareholders to the market.”
This morning the group highlights cost control, with a 0.2% increase in the summer in unit costs if fuel is excluded, and an increase in operating profit in the third quarter of 2%, to 2,053 million. At this point, a lower fuel cost during the quarter of 180 million has played in our favor. The operating margin in the months with the highest demand of the year has been 22%, which improves by 0.4 percentage points on that obtained a year ago. Taking the rolling year to September 30, IAG achieves a margin of 15.2%.
With the year on track, the company that includes British Airways, Iberia, Vueling, Aer Lingus and Level, maintains the outlook for 2025. Flight reservations for these last few months continue to fuel sales growth and “sustainable value creation is expected throughout the cycle.” IAG expects to close the year with a 2.5% increase in the capacity offered; Unit costs (without fuel) must increase by 3%, and investments will approach 3.7 billion. The total cost of fuel should be around 7.1 billion throughout 2025.
The total liquidity position decreases by 1,900 million, to 11,442 million, just as financial debts are lower as of September compared to the end of 2024, with 14,783 million (-2,562 million euros). Net leverage is 0.8 times (1.1 in December 2024), with net debt slightly higher than 6,000 million (-1,508 million compared to the end of 2024).
Regarding activity last summer, IAG explains that the North Atlantic market “experienced some weakness in leisure and retail outlets. economy United States”, in addition to being affected by the exchange rate. Unit revenues fell 7.1% in this area, half due to the change of the dollar against the euro. The unit prices of the holding company’s airlines were lower in Europe due to the effect of high growth at British Airways and more competitive markets elsewhere. And the South Atlantic and Asia-Pacific markets showed strength.
(Article in progress. There will be expansion)
