IAG Posts Higher Q3 Profit and Keeps Full-Year Outlook Unchanged

International Consolidated Airlines Group (LON: IAG) reported a 2 percent increase in third-quarter operating profit to €2.05 billion, maintaining its outlook for full-year earnings growth as strong travel demand offset softer North Atlantic pricing and weaker cargo revenue.

IAG shares are trading 6.54% lower today off the back of the print.

The British Airways and Iberia owner commented that it remained “on track to deliver another year of growth in revenues, profit and shareholder returns.” 

Chief Executive Luis Gallego highlighted the strong performance, stating: “So far this year we have grown our operating profit by 18% and adjusted earnings per share by 27% and increased our interim dividend.”

Passenger revenue rose €177 million at constant currency compared with a record third quarter last year, while total reported revenue was broadly flat at €9.33 billion. 

The group’s operating margin improved to 22 percent, supported by lower fuel costs and tight cost control, with non-fuel unit costs up just 0.2 percent.

IAG’s net leverage fell to 0.8 times EBITDA, and it announced an interim dividend of €0.048 per share. The company has nearly completed a €1 billion share buyback programme and plans to outline additional shareholder returns alongside its full-year results in February.

Gallego said IAG would continue “disciplined investment for the future to improve customer experience and operational efficiencies.” 

The airline group maintained its guidance for 2025, citing strong forward bookings into the fourth quarter and resilient demand across its core markets, though it remains mindful of macroeconomic and geopolitical risks.