IAG (BA and Iberia) will increase internet revenue by 19.3% in 2025 | EUROtoday

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IAG, the holding firm that controls British Airways, Iberia, AirLingus and Spanish low-cost Vueling reported a higher-than-expected revenue in 2025, because of decrease gasoline prices and the resilience of routes to South America, with a specific deal with premium class companies.

IAG recorded an working revenue earlier than extraordinary objects of €5.02 million, in comparison with the €4.97 billion forecast by analysts and the €4.443 billion in 2024, representing development of 13.1%. Net earnings additionally grew strongly to three.342 billion with development of 19.3 p.c.

IAG mentioned it would return €1.5 billion of extra money to shareholders over the following 12 months, beginning with a €500 million share buyback that might be accomplished by the top of May 2026, whereas it plans to allocate round €448 million to its dividend payout. For the present 12 months, IAG expects an working margin of 12-15% and a return on invested capital of 13-16%. Last 12 months the margin stood at 15.1%.

Turnover grew by 3.5% to 33.2 billion euros regardless of the slight decline in passengers transported in 2025 to 121.5 million (-0.4 p.c). North America, of which IAG has a market share of 49% throughout all group firms, is weak, because of the stricter immigration insurance policies of the United States and rising geopolitical tensions, which have weighed on IAG’s earnings: these locations are set to develop in single digits over the course of the 12 months.

On the opposite, it runs via South America the place the provider is the chief for connections from Europe. During 2025, Iberia continued its technique of accelerating frequencies in the direction of its principal South American locations with a development of 4.4% within the 12 months additionally via the brand new Airbus A321 XLR plane which permits it to hold out extra frequencies in secondary places.