Iag Share Price: IAG results and British Airways update

The market’s focus on iag share price has sharpened after IAG published full-year results showing revenue up 3. 5% to €33. 2bn and a raft of operational and shareholder actions. The company and its largest airline, British Airways, both reported performance improvements that have shaped investor sentiment.

Iag Share Price reaction

IAG said full-year revenue rose 3. 5% to €33. 2bn, driven largely by increased capacity after the group added 34 aircraft to its fleet, and underlying operating profits rose 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 improved cash generation, while net debt fell by €1. 6bn to €5. 9bn.

Management announced a final dividend of €0. 05 per share, taking the full-year total to €0. 098, up 8. 9%, and unveiled a new share buyback programme of €1. 5bn. First-quarter bookings were described as "strong", helped by the early timing of Easter. The shares were broadly flat in early trading before moving lower by mid-morning as higher investment plans to expand the aircraft fleet weighed on sentiment; full-year profits landed slightly ahead of forecasts and demand trends in early 2026 were described as positive.

Market commentators noted that IAG expects capacity in 2026 to increase by around 3%, and that free cash flow is expected to exceed €3. 0bn. The firm also flagged annual capital expenditure set to rise from €3. 4bn in 2025 to around €4. 9bn by 2028, covering fleet expansion, upgrading digital infrastructure and leveraging data to improve the customer experience.

British Airways record year

British Airways delivered an operating profit of £2, 230m in 2025, up £182m compared with 2024, at an operating margin of 15. 2% (+1. 0pts vs last year), flying 1. 7% more than 2024 levels. The airline said 2025 was a record year and that these results formed part of a wider £7bn investment. The carrier flew 46. 7* million customers to 183 destinations across almost 308, 000 flights.

Punctuality reached 82% of flights departing within 15 minutes (D15), up from 73% in 2024 — the best operational performance since 2011 and the strongest winter (Q4) performance on record. Net Promoter Score rose by 10. 5 points compared with 2024, 5. 2 points above target and the best result since 2019. The company credited reliable operations for 70% of the improvement, citing better punctuality and fewer cancellations.

Sean Doyle message to colleagues

A message from CEO Sean Doyle to colleagues recalled that earlier the same morning he had shared an update about British Airways' achievements following IAG's full-year announcement. He highlighted completion of 600 improvement projects in the year, taking the total to more than 1, 200, and said the business-wide transformation aimed to modernise the airline, improve every experience for customers and colleagues, and build a more resilient and sustainable business for the future.

The message also contained operational detail and an acknowledgement of challenges: "Something went wrong. Try again or ping techsupport. " and "Something just happened which created a warning condition. " The internal note then continued with the performance summary and initiatives that supported the improvements.

Operational highlights and challenges

Among customer-focused initiatives cited were Group 0 boarding, fewer boarding groups, automated announcements, and continued investment in food and drink including premium wine upgrades and Birchall tea. The airline introduced new short-haul interior cabins on delivered aircraft, opened the new era of First Wing at London Heathrow, and unveiled a new global lounge concept in Miami and Dubai, both receiving excellent customer feedback. Heathrow lounges were identified as next in line for full redevelopment. The business also launched BA Engineering Gatwick (BAEG) to strengthen British Airways Engineering.

The airline acknowledged a significant operational disruption: the Heathrow power outage led to more than 700 cancellations, but the operation was back to operating more than 95% of its schedule on the days that followed, with recovery attributed to investment in technology and the resilience of colleagues who worked to get customers where they needed to be.