International Consolidated Airlines posts record operating profit and narrows pandemic debt

International Consolidated Airlines reported a record €5.0 billion operating profit on €33.2 billion of revenue and reduced net debt to about €6 billion, while management announced a €1.5 billion share buyback and a modest dividend yield.

International Consolidated Airlines has reported full-year results showing a return toward pre-pandemic performance and improved balance-sheet metrics. Revenues rose and operating profit reached a record level, supported by strength in premium cabins and growth in asset-light businesses. The results follow a weaker third quarter that the company said was affected by external factors. Management highlighted strong recent bookings and set medium-term targets for margins and return on capital. Key facts: - Revenue for the year was €33.2 billion and operating profit was €5.0 billion, with the article noting an operating margin increase to 15.1% from 13.8%. - Return on Invested Capital (ROIC) rose to 18.5% from 17.3% in the prior period. - Net debt fell to about €6.0 billion, down from €7.52 billion at the end of 2024. - The company announced a €1.5 billion share buyback and a dividend with a reported yield of 2.1%. - The article notes growth in asset-light areas such as Iberia’s MRO business, BA Holidays and the IAG Loyalty scheme, and mentions partnerships including American Express. - The article mentions the shares have risen about 40% over the last year and about 195% over two years, and that the group carried 121.6 million passengers in 2025 with capacity planned to grow by around 3%. Summary: The results indicate that IAG has largely repaired pandemic-era losses, delivering record operating profit and reduced leverage while expanding non-ticket revenue streams. Management has set medium-term targets for operating margin and ROIC and signalled higher capacity and strong booking trends for the near term.