Financial results and passenger traffic dynamics
The IAG Group, which includes airlines such as Iberia and British Airways, closed the first nine months of 2025 with a net profit of €2.7 billion. This is a 15.5% increase compared to the same period last year. Total revenue for this period reached €25.2 billion, showing an almost 5% growth. From January to September, the carrier served 92.4 million passengers, which is slightly below last year’s figure. The average load factor for flights was 88.6%.
Market reaction and reasons for share price drop
Despite positive results over the nine months, the third quarter was less successful. During this period, profit decreased by 2.3%, while revenue remained almost unchanged. This led to a sharp drop in IAG’s share price on the stock market—the shares lost 11.5% of their value in a single day, falling to €4.17 each. The company’s market capitalization shrank by €2.5 billion, marking the biggest decline since November 2021. Analysts note that the results were slightly below expectations: third-quarter revenues were 1% lower than forecast, while net profit was 5% below the predicted level.
Impact of competition and geographic routes
Within IAG’s shareholder structure, Qatar Airways remains the largest stakeholder with a 25% share. Management emphasizes that current results demonstrate the company’s resilience, and that the stock price does not reflect its true value. Strong performance on routes to Latin America and the Far East has helped offset weaker demand in North America and increased competition in Europe.
Debt reduction and investment plans
During the reporting period, IAG managed to reduce net debt by over €1.5 billion, bringing it down to €6 billion. This represents 0.8 times EBITDA, below the established limit. In 2025, the group plans to invest about €3.7 billion, allocating funds to fleet renewal and process digitalization.
Subsidiary results and dividend policy
Within the group, Iberia posted the strongest profit growth, increasing operating results by 31% and reaching a record €1.07 billion. British Airways also improved its figures, while Aer Lingus boosted profit by 69%. Meanwhile, Vueling saw its profit fall by nearly 6%. The board of directors announced an interim dividend payout of €220 million and is preparing an additional payout for 2026. The €1 billion share buyback program is also nearing completion.
Outlook and comparison with competitors
IAG management maintains its 2025 outlook unchanged, expecting a 2.5% increase in capacity and positive booking trends in the fourth quarter. After three quarters, the group is outperforming competitors such as Air France-KLM, Lufthansa, and Ryanair in terms of profits.
