The IAG share price had a strong performance in 2025, continuing a trend that began in 2024, when it was one of the best-performing companies in the FTSE 100 Index. It jumped by ~40% this year, pushing its market capitalization to over £18 billion.
IAG stock outperformed other top airlines this year, with Delta rising by 17% and United Airlines soaring by 8.40%. The closely-watched US Global Jets ETF (JET) was up by 10%.
IAG share price jumped amid robust performance
IAG, the parent company of top airlines like British Airlines, Iberia, and Aer Lingus, has done well this year, helped by its sustained growth and the ongoing shareholder returns.
The most recent results showed that the company’s business continued to outperform analysts’ forecasts. Its results revealed that its revenue rose to €25 billion in the first nine months of the year, up by nearly 5% from the same period last year.
The company’s profitability growth accelerated at a faster pace than revenue, helped by improved efficiency. Its operating profit rose by 18.3% to €3.9 billion, which was much higher than what analysts were expecting.
IAG’s profit-after-tax rose by 15% to €2.7 billion, while the earnings per share (EPS) jumped by 20.2% to €57.2. This growth happened as its key regions, especially the North Atlantic and Europe, continued the bullish momentum.
IAG has increased its North Atlantic capacity across its key brands like British Airways, Iberia, and Aer Lingus. While the United States is its most important market, the company is also focusing on the Latin American region.
It has increased its fleet and routes
Additionally, the company has continued to add new routes as demand for its services jumped. Its Aer Lingus brand expanded to Indianapolis, Nashville, and Minneapolis, while British Airways expanded to Milan and Kuala Lumpur.
IAG share price has also done well as the management has worked to boost its balance sheet. It ended the last quarter with over £8.7 billion in cash and equivalents, while its borrowings improved to £14.7 billion from the previous £17.34 billion.
The company has committed to continuing to reduce its leverage, while also expanding its fleet with a $13 billion Boeing order. This performance has also given it the flexibility to continue its shareholder returns. It recently completed a €1 billion share buyback that has reduced its outstanding shares.
At the same time, the company has continued paying dividends, with its current yield being about 2.7%. The company has hinted that it will keep rising its payouts.
IAG stock price technical analysis
IAG stock price chart | Source: TradingView
The daily chart shows that the IAG stock price has been in a strong uptrend this year, moving from a low of 205.9p in April to the current 400p. It jumped to a high of 425p on November 3 and then dropped to 362p after earnings.
It formed a double-bottom pattern at 362p and has now filled the gap as it moves close to its all-time high. The stock remains above all moving averages and the Supertrend indicator.
Therefore, the most likely scenario is where it keeps rising, with the next key level to watch being at 425p. A move above that level will point to more gains, potentially to the psychological point at 500p.
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