Finance
British Airways Owner Iag Beats Annual Profit Estimates
Published by Global Banking & Finance Review®
Posted on February 27, 2026
1 min readLast updated: April 2, 2026
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Quick Summary
IAG exceeded expectations with a €5.024 billion operating profit in 2025 (+13.1%), driven by lower fuel costs and robust transatlantic premium demand; revenue rose 3.5% and margins improved to 15.1%, while shareholder returns were boosted.
IAG Surpasses Annual Profit Expectations with Strong Performance
(Corrects paragraph 2 to say 5.02 billion euros, not million, and profit rise to 13%, not 3.5%; corrects dateline)
IAG's Financial Performance Overview
Feb 27 (Reuters) - British Airways owner IAG reported a better-than-expected annual profit on Friday as it benefited from lower fuel costs and resilience on its core transatlantic routes, particularly for its premium services.
Operating Profit Details
IAG reported an operating profit before exceptional items of 5.02 billion euros ($5.93 billion), compared with 4.97 billion euros projected by analysts polled by LSEG. That's up 13% from last year's adjusted operating profit of 4.44 billion euros.
Currency Exchange Rate Information
($1 = 0.8471 euros)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich)
Key Takeaways
- •IAG’s operating profit before exceptional items rose to €5.024 billion in 2025, beating forecasts and marking a 13.1% increase year‑on‑year.
- •Revenue grew 3.5% to €33.213 billion, supported by lower fuel costs and strong transatlantic premium demand.
- •Operating margin expanded by 1.3 percentage points to 15.1%, reaching the top of its 12–15% target range.
- •IAG announced shareholder returns including a €1.5 billion buyback program and an 8.9% increase in total dividend to €0.098 per share.
References
Frequently Asked Questions about British Airways owner IAG beats annual profit estimates
1How much was IAG’s operating profit in 2025?
It was €5.024 billion before exceptional items, up 13.1% from 2024.
2What drove the profit increase?
Lower fuel costs and strong demand on core transatlantic premium routes drove higher profitability.
3Did IAG improve its operating margin?
Yes, the operating margin rose by 1.3 percentage points to 15.1%, at the top of its target range.
4Is IAG returning cash to shareholders?
Yes, it launched a €1.5 billion share buyback and increased its total dividend by 8.9% to €0.098 per share.
