British Airways owner International Consolidated Airlines Group SA (LSE:IAG) reported quarterly revenues and profits broadly in line, if not marginally lower than expected, but kept its outlook for the full year unchanged.
The FTSE 100 group generated an operating profit of €2.05 billion for the third quarter of 2025, up 2% on last year, essentially in line with the average City forecast of €2.06 billion.
Overall revenue was flat at €9.33 billion, versus the consensus estimate of €9.43 billion, as passenger revenue grew €177 million at constant currency but passenger revenue per available seat kilometre was down 2.4% at reported rates.
Chief executive Luis Gallego said: “We delivered a strong performance in the third quarter and remain on track to deliver another year of growth in revenues, profit and shareholder returns.”
IAG increased its interim dividend to €0.048 per share and said it has nearly completed its €1 billion share buyback.
Gallego said the group would “update the market about further shareholder returns” with its full-year results in February, noting that its "strong balance sheet gives optionality for capital allocation", with net leverage at 0.8x.
The airline group said travel demand "remains strong" and the group is "well positioned, with a strong business model with great brands and a best-in-class network, whilst being mindful of the macroeconomic and geopolitical backdrop".