IAG’s full-year revenue rose 3.5% to €33.2bn, largely driven by increased capacity as the group added 34 aircraft to its fleet.
Underlying operating profits rose at a faster pace of 13.1% to €5.0bn, helped by lower fuel costs.
Free cash flow fell by €0.4bn to €3.1bn as increases in capital expenditure more than offset its improved cash generation. Net debt fell by €1.6bn to €5.9bn.
In 2026, capacity is expected to increase by around 3%, while free cash flow is expected to exceed €3.0bn. First-quarter bookings have been “strong”, helped by the early timing of Easter this year.
A final dividend of €0.05 per share was announced, taking the full-year total to €0.098, up 8.9%. A new share buyback programme of €1.5bn was also announced.
The shares were broadly flat in early trading.
Our view
HL view to follow.
IAG key facts
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