Thank you very much. Good morning everyone and welcome to the IAG 2025 full year results.

As usual, I am joined today by Nicholas Cadbury, our CFO, as well as the other members of the IAG Management Committee. I'm pleased to be announcing a record set of results today, highlighting the excellence of IAG's performance in 2025.

We are delivering for our customers, as our investments in operational and customer-related performance have led to another year of improving punctuality and customer Net Promoter Scores. We are delivering record operating profit, operating margin, and return on invested capital.

We are delivering for our shareholders through the increased dividend and the new excess cash returns of €1.5 billion. This is a significant increase on the €1 billion buyback we announced last year.

We continue to see a supportive demand environment that encourages our positive outlook and, as a result, we are planning further excess cash returns in future. We look to the future with great confidence as we continue to leverage our business model and execute our strategy, which will create value for our shareholders in the long term.

In 2025, we have delivered world-class financial performance in each of our key metrics, continuing our track record over the past few years. We continue to grow revenue, with robust demand for travel in our markets.

Our operating profit and operating margin are now both at record levels, and our earnings per share has increased by over 22% this year. Our balance sheet is now in a very strong position.

This has benefited from the strong free cash flow that we are now consistently generating, despite a big step-up in capex during the year. For our shareholders, we are creating significant value by earning an excellent return on invested capital of 18.5%.

The fact that we are delivering strong results is not an accident, starting with the fundamental premise of IAG. Our group structure promotes excellence and accountability, whilst providing the group-level support and direction that the individual businesses benefit from.

Our portfolio contains diversity of markets, brands, and business models that continually increase the resilience and sustainability of our performance through the cycle. Bringing this together is the secret sauce of IAG and sets us apart from any other airline group.

Moving on to our strategy and targets, we are sticking to what make us best in class. Our three strategic imperatives are designed to make our business stronger, more resilient, and less cyclical.

We have set out margin and return on invested capital targets that are appropriate for the group through the cycle, and we believe support a more sustainable long-term future. We are pleased to be delivering results that are at or above the top of those ranges, and we will continue to target the full potential for all of our businesses through our transformation program and capital allocation process.

Ultimately, we want to create value for shareholders by delivering sustainable profitability and accretive growth in the long term. Over the past couple of years, we have highlighted three major areas where we could create significant value, and we are delivering on our commitments.

British Airways has already reached its 15% margin, but still has more to deliver on its transformation program, including the commercial platform and fleet deliveries. Iberia is well on the way to its €1.4 billion profit target, with an exceptional margin last year of over 16%, and will continue to grow profitably in its core markets.

We will tell you more about loyalty exciting potential at our Capital Markets Day in June, both as a business in its own right as a significant contributor of value to the overall group performance. On that note, I will pass over to Nicholas.

Thanks Luis, and hi everybody. I'm pleased to share our full year results.

This first slide shows our very strong operating profit and margin performance. We've delivered a record operating profit of €5 billion and €24 million, up €581 million versus last year.

This is driven by a strong passenger revenue growth and also good other revenue growth from loyalty, maintenance, and also sustainability incentives, and supported by the lower fuel bill, of course. Our cost performance was in line with expectations and with the guidance previously provided to the market.

I'm pleased with our margin performance, which continues to rank among the best in the industry. At 15.1%, it sits at the top end of our target range, 1.3 points higher than last year.

On the right side, you can see how our strong markets, hubs, and brands drove this exceptional performance in all our businesses, which we will detail in the next slide. All our operating companies delivered excellent results this year, building on the strong performance also achieved last year.

Aer Lingus delivered a strong improvement in 2025, increasing its operating margin to 11%, with operating profits at its second best level on record. The airline was affected by industrial action in the base year last year, and managed to hold unit revenue flat while growing capacity.

This was despite a very tough competitive environment in Dublin, particularly from US carriers, that is ongoing. Alongside this, Aer Lingus delivered strong cost discipline supported by its transformation program.

British Airways delivered an excellent margin performance at the upper end of the group target range. This was supported by strong premium leisure and improving corporate demand, with cost performance reflecting investment in the business alongside its transformation program.

Iberia also had a tremendous year, reaching a record 16.2% operating margin. The airline made excellent progress against its Flight Path 2030, delivering €1.3 billion of operating profit this year towards its €1.4 billion ambition.

Driven by the strong revenue performance, particularly in Latin America, Iberia's costs were particularly affected by engine availability on both long-haul and short-haul, leading to extra disruption and resilience costs. The cost increase also includes the cost relating to its growing MRO business that was particularly strong in the first half of the year.

Vueling delivered a robust set of results, generating an operating profit of €393 million at a 12% margin, among the strongest in the European low-cost sector. Revenues reflected the softer summer travel environment in parts of Europe, particularly northern Europe, partially offset by the continuing strength in the Spanish domestic market.

What really stands out, however, is Vueling's strong cost performance that Luis will touch on later. IAG Loyalty, including Holidays, continues to deliver high-quality, high-margin earnings.

The business yet again delivered the 10% margin growth ambition we set for it, reporting £469 million of profit at an 18% margin. Excluding the impact of the VAT dispute with HMRC, which is subject to ongoing litigation and we give and we feel still feel confident in, the operating profit would have reached over £500 million.

Turning now to our revenue performance in more detail. Overall demand for travel remains strong throughout the year, underpinned, as just mentioned, by the diversity of our network and of our strong brands.

Capacity grew by 2.4%, in line with our guidance that we gave at Q3 results, and we delivered an increase of 1% in passenger unit revenue at constant currency, and flat on reported basis, a solid outcome against a record 2024. If we look at the default performance by region, we are pleased with the North Atlantic performance, where we grew capacity by 1.4%, with unit revenues up 1.5% at constant currency, and, importantly, showed an improving trend as we went through the second half, with Q4 unit revenues up 1.8% at constant currency.

Underneath this trend were consistent with what we highlighted throughout the year, with good premium demand partially offset by some softness in US point-of-sale economy leisure demand and continue impact from US direct capacity growth into our hubs in Dublin and Madrid and secondary European markets. BA drove the Q4 performance, with unit revenue at constant currency increasing strongly year on year, driven by strong premium cabin and business travel demand, particularly from the US point of sale, despite a tough comparator last year.

Latin America and the Caribbean was the strongest performer in the network. Our capacity increased 3.3%, with unit revenue at a plus 3.3% as well at constant currency.

Iberia delivered another excellent year and drove the Q4 performance, with premium cabin, LATAM point of sale, and business travel all performing strongly. In Europe, we increased our capacity by 2.2%, with unit revenue down 2.1% at constant currency.

As mentioned earlier, this reflected softer demand in parts of the summer and and also additional British Airways capacity. Domestic saw us growing capacity by 2.2%, with unit revenues flat for the reflecting strong demand, particularly in the Canary and Balearic Islands.

In Africa, Middle East, and South Asia, we increased capacity by 2.7%, with unit revenue up 0.8% at constant currency. Finally, Asia Pacific delivered a strong recovery, with capacity up 6.4% and unit revenue up 4.2%, supported by a refocus of the network towards stronger performing markets such as Bangkok and Kuala Lumpur, and the full year impact of Iberia's relaunched routes to Tokyo.

As turning to this year, we're planning to continue to grow the business in a disciplined way, with capacity up around 3% in 2026. Briefly touching on what we're seeing so far this year, we're seeing a strong Q4 Q1, sorry, including the North and South Atlantic and some additional benefits from the shift to an earlier Easter.

At this point, I'd just like to highlight the FX has a major impact factor. Over 2025, we saw the pound weaken against the euro and the dollar weaken against the pound and euro.

At these current rates, you will note there will be a significant FX headwind on revenue this year, particularly in the first half of the year, which will be reducing progressively into the second half. Of course, this will apply to our cost base in the reverse, with a favorable FX impact.

Total unit costs improved 0.4%, and non-unit fuel unit costs increased by 2.8% year on year, actually in line with our guidance. This full year cost performance benefited from FX movements of 1.3%, although it's worth noting the increase in costs relating to the growth of other revenue to the MRO also drove around 1.3% of uplift as well.

They're both the FX and the other revenue cost neutralized each other out. Employee costs units unit costs increased 3.8%, driven by operating investments, operating investments and payments linked to strong financial performance.

Supplier unit costs rose by 0.8%, with transformation initiatives helping to offset inflation pressures and support investments in our customer experience. Ownership costs increased 10%, reflecting the new aircraft, cabin retrofits, lounge upgrades, and digital platforms, all of which offer the benefit to our customers.

Those impacts were partly offset by a 9.1% reduction in fuel costs, driven by lower prices and partly offset by an increase in carbon-related costs, both ETS and CORSIA. We remain confident that our transformation program will continue to underpin cost benefits, cost efficiencies as we move forward.

For 2026, we expect non-fuel costs to be down around 1%. That includes a about a benefit of round about 2%.

In other words, they're up 1% on a constant currency basis. Fuel prices have been very volatile.

On the 31st of December, our fuel bill based on the forward curve then was estimated to be €7 billion, including 62% hedge that we have in place. Since then, jet prices have increased following the recent escalations in tension tensions in the Middle East.

Based on the current forward curve, we could see an increase to round about 4. 7.4 billion euros.

We'll have to see how this plays out over the next few weeks and months. This fuel footprint, sorry, also includes a year-on-year increase from ETS and CORSIA of roughly €150 million.

Adjusted EPS increased by 22.4%, reflecting both a strong performance with a growth in adjusted profit after tax of 17% to €3.3 billion, and the share buyback program that reduced our weighted average shares count by 4.3%. Overall, this performance underscores the continued momentums in our earnings, and on focus and our focus of delivering sustained value for all of our shareholders.

We achieved a free cash flow of €3.1 billion after investing €3.4 billion of capital in the business. This was supported by the positive working capital movement, partly driven by IAG Loyalty and the Amex contract renewal, as well as an interest paid benefit from the early debt repayment.

These benefits more than offset higher purchase of carbon assets ahead of the changes to free ETS allowances, and a payment to HMRC relating to the IAG Loyalty tax appeal that will not settle until at the earliest 2027. I'm pleased to report that our balance sheet continues to be very strong, with net debt leverage of 0.8 times and liquidity over €10 billion, positioning positioning us well for the years ahead.

Our gross debt benefited from a €1.3 billion favorable FX impact related to the US dollar denominated debt from the weakening of the US dollar. We aim to keep our gross debt leverage between 1.5 and 2 times.

To this aim, we finished the year at 1.9 times, having repaid €1.6 billion of non-aircraft debt, and taking two-thirds of our 25 aircraft deliveries as unencumbered. We remain we remain committed to investing in our fleet, enhancing customer experience, and building resilience.

We're showing on this slide the phasing of capex over the coming years, which will put our capex allocation and balance sheet decisions into context. In 2025, capex was slightly lower than planned due to timing differences and rephasing of some customer-related investments.

This year, 2026, we expect capex to be round about €3.6 billion, with 17 aircraft deliveries, continued cabin retrofits, including British Airways A380s and 787-9s, and ongoing investments in property, especially the improvement to our lounges. Looking forwards, we've been saying for a while now that our capex will increase in the coming years as delayed aircraft from the manufacturers start to get delivered and make up for the lowest lower capex numbers we've seen over the last few years.

For the last four years, this increase has continuously pushed to the right. However, we expect to start seeing this increase materialize in the next few years.

In 2027 and 2028, we expect capex to average €4.9 billion, mainly reflecting the delivery of the Boeing 737s for Vueling and the start of the 777-9 deliveries for British Airways in 2028. Capex is then expected to increase further to an average of €5.6 billion for 2029 to 2031, as the 71 widebody aircraft we ordered in 2025 and the previously delayed widebody aircraft deliveries start to materialize, with round about 70% of these deliveries being replacement aircraft.

Beyond this period period will return to our normalized capex run rate of round about €4.5 billion from 2032 onwards. We're able to do this as we're making good returns on capital and have disciplined approach to capital allocation to support our ambition to deliver focused capacity growth by 2% to 4% over the medium term.

With this increase in future capital spend, we will still be strong cash positive throughout these years, and will continue strong shareholder cash returns with a higher cap capex delivering higher profits. Given this confidence in our cash generation, the current very strong balance sheet, and in preparation for this capex trajectory, we've decided to widen our guidance on distributing excess cash returns to 1 to 1.5 times net debt leverage.

Finally, our disciplined approach to capital allocation and how we manage our balance sheet, investments, and shareholder returns. Firstly, we remain focused on balance sheet strength.

Across the cycle, we maintain our net leverage aim of less than 1.8 times, this being a proxy for investment investment-grade rating, which we are with both Moody's and S&P. As I mentioned earlier, in the near term we want our gross debt to be 1.5 to 2 times, which puts our balance sheet in an extremely strong position.

Secondly, as I've just described, how we'll continue to invest in the business and we'll be doing so at high rates of return on capital. Thirdly, we're committed to a sustainable dividend through the cycle.

For 2025, this equates to a total dividend of €448 million, and our intention is to grow this broadly in line with inflation, while dividend per share will grow faster as we buy back shares. Lastly, we'll continue to return excess cash to shareholders as we've just announced a further €1.5 billion of excess cash returns over the next year.

This represents round about 6.5% of today's market capital, and over the three years since 2024, we will have distributed just under €3 billion of excess cash, around 13% of today's market cap. Given our financial framework and ambitions will still allow us to continue significant excess shareholder returns over the coming years, while also reinforcing the balance sheet in anticipation of the higher capex.

Overall, this disciplined approach ensures that our balance sheet remains a source of strength, supporting the business through the cycle, giving giving us the flexibility to allocate capital where it creates the most value, and positioning us to continue investing for the long term while delivering attractive returns to our shareholders. Thank you.

I'll now hand back to Luis to continue with the strategic update about our business.

Thank you, Nicholas. I will now spend a few moments going through the strategy, which has worked successfully for us for a long time now.

This will demonstrate how we can sustain this level of performance. Firstly, the backdrop is compelling.

Demand for travel is and has been a long-term, secular trend, which, if anything, has increased in recent years. As Nicholas indicated in his preview of our deliveries over the next six years, supply is constrained by the aircraft and engine manufacturers.

We have strong positions in highly attractive markets, which are served by more than one airline brand in every market. This diversity is a key component of the group's resilience and helped to deliver such a strong performance in 2025, even whilst the macroeconomic backdrop is not particularly supportive.

Nevertheless, we grew passenger revenue in each of our core markets, with all of our airlines contributing to that growth. We are investing in our brands, which is delivering a better experience for our customers, and you can see in our NPS improvement across the last three years.

The investment is across the customer journey, includes on the ground and in the air. We are currently excited about our partnership with Starlink, which will provide high-speed connectivity across the group on every one of our airlines, and the first Starlink-enabled aircraft will be operated by British Airways in a few weeks' time.

On this slide, we have highlighted some examples of how transformation underpins our margin delivery, supporting both revenues and cost control. At British Airways, the improvement in on-time performance has been a fundamental driver of margin improvement over the last couple of years.

It drives productivity, increases revenue, and reduced cost of disruption. It is also the biggest driver of customer satisfaction.

In 2025, they delivered OTP of over 80%, the best performance since 2014 and a 20-point increase over 2023. In the meantime, Iberia remains as one of the most punctual airlines in the world.

Also, at Iberia, they have focused on transforming their proposition over the last few years, reflecting the more valuable demographic of their customer base, particularly in the South American markets. As a result, they have grown the premium customer base, and this has helped to drive their yields in the premium cabins.

Vueling has delivered the best cost control of any low-cost carrier in Europe since pre-COVID. In particular, they have driven lower supply unit costs, which includes both maintenance and airports, which is an exceptional situation in the current operating environment.

I will also mention at this point that Aer Lingus delivered a record NPS score and their best OTP since 2016, highlighting their customer-focused point of difference in Dublin. All these improvements have been supported by collaboration and sharing best practices across the group, one of the core benefits of our structure and business model.

IAG Loyalty continues to grow strongly as a higher growth, higher margin, and capital-light business. Based on the earn-and-burn model, where we incentivize the awarding of Avios by also increasing opportunities to spend them, it increased revenue by issuing 200 billion Avios, up to 30%, and at British Airways Holidays, they benefited significantly from the changes to the BA Club, with revenue from elite members increasing more than 15 times faster than other customers.

As I mentioned earlier, Loyalty expects to grow earnings by at least 10% each year, and grew profit by £49 million to £469 million in 2025. This profit growth was even higher growth if you put to one side the disputed HMRC tax treatment, at over 20%.

The second major strand to our capital-light development is through our airline partnerships, which deliver accretive value without the need for investment in aircraft. We access 3,000 additional aircraft through our partners, which then unlock 200 2,600 additional markets through a one-stop journey.

This allow us to cover 97% of all passenger demand from our home markets, with loyalty scheme benefits a key factor. This powerful network, the world's largest, delivers significant partner-enabled revenue to the group every year.

We made progress with our sustainability road map in 2025. We increased our SAF usage to 3.3% of our total fuel volumes, up from 1.9% in 2024.

This also helped to deliver carbon intensity of 77.5 g of CO2 per passenger-kilometer, ahead of our target, alongside our investment in modern, efficient aircraft. As always, this was all delivered by our people.

We are committed to supporting our employees through their careers at IAG. We recruited over 10,000 people in 2025, continued to recruit and train pilots at our dedicated Airline Academies, and continue to develop pay structures with all our collective groups that benefit both parties.

This includes an agreement two weeks ago with Iberia's ground staff. I would like to take the opportunity at this point to thank all of our employees for their hard work during the year.

Over the last three years, we have created significant value for shareholders. Firstly, we have a portfolio of markets and brands that is unrivaled anywhere in the world and is valued by our customers.

This drives attractive revenue growth. Secondly, our execution every day is delivering best-in-class margins and earnings growth, significant free cash flow, and high return on invested capital.

Thirdly, this creates value for our shareholders through the dividend and our program of historical and prospective buybacks. This is world-class shareholder value creation.

In summary, the market remains compelling. We will continue to execute on our strategy and deliver world-class margins and return on capital.

We are rewarding our shareholders with strong earnings per share and dividend per share growth, as well as €1.5 billion in excess cash returns. We plan to continue to return more excess cash to shareholders, and we are confident that we will create significant value for our shareholders in the long term.

Now, we open the line to your questions.

Morning, everyone. Two questions from me.

Firstly, the transatlantic unit revenues at constant currency were -3.something% in Q3, but back to positive, I think it's 1.8 in Q4, very encouraging. Could you talk a bit about the outlook for the transatlantic in summer '26?

It feels like there's quite a few moving parts. Those economy cabin weaker trends in '25 become a soft comp, but at the same time, I don't know if you anticipate any disruption from the football World Cup, and to what extent you expect the premium cabin trends to remain strong.

Any comments, please, on summer transatlantic unit revenue progression in 2026. Second question, slide 17, very helpful in terms of laying out the medium-term vision on the capex.

Could you just help us in terms of actual aircraft deliveries? Is there a particular year, 2029, 2030, when you expect to be at peak deliveries?

Could you just tell us roughly what that might look like? Is it 40, 50 aircraft?

What's the split between narrowbody, widebody in a sort of peak delivery year, please? Thanks very much.

Thank you very much, and good morning. North Atlantic, as you said, since the third quarter last year, we saw a rebound, and we had a positive increase of unit revenue in the last quarter of the year at constant currency.

Now what we see is an improvement in the trend over the last few months. In particular, in the case of British Airways, where even the non-premium leisure revenue has been booking well.

US point of sale, in particular, strong, and this is in contrast with what we saw in the third quarter of 2025. Business demand is also booking really well, both US and UK point of sale, and premium leisure continues strong.

In Iberia and Aer Lingus, we also expect demand to remain strong, but they are having more increased competition in their hubs. Maybe, Sean, you can add some comment about British Airways.

I think we've got a couple of things which have been very encouraging in Q4 and in Q1 as well is the business demand. We're seeing strong demand out of the US point of sale and pretty robust demand out of UK point of sale.

I think we've seen recently, as well, the kind of market out of US point of sale to Europe more broadly is resilient. One example, to be honest, was the Winter Olympics, where we saw really strong demand out of the US into markets like Italy, and we were able to capitalize on that over our hubs.

We're seeing that in the fourth quarter and we see it in the first quarter as well.

Marco, you want to comment?

In terms of the performance in Iberia, also we have seen very strong business evolution there. It's true that in terms of our yields in economy, we have seen some pressure related to the increased competition, but that has applied primarily in Q3 of last year, you saw reflected also in the overall performance of the group.

While in Q4, that strong increase has softened, and as a result also, we saw an improvement of performance.

Just on the capex numbers, we'll come back Jaime at a later date and give you kind of more kind of precise kind of what's being delivered by year a bit later. What I would say is in 2027, the back end of this year and into next year, we're of course starting the refleeting of Vueling into the 737s, so that starts ramping up from '27 onwards, and that takes over round about six years to do as well.

Then in '28, you start getting the deliveries of the 777-9s into British Airways. Then you get the airplanes that we ordered in March really start to tend to get delivered from '29 onwards over those kind of four, five years.

We'll come back and probably give you a bit more detail on that later.

Great. Thanks, both.

Thanks, Jamie.

Good morning. Two for me, please.

The first one is on distribution, specifically how you're approaching the decision about whether and how to sell through large language models. Would you plan to engage directly with LLMs through an API or to rely on existing structures, GDSs, travel agents, and continue to pay commissions?

When do you think you'll sell your first trip and ticket through an LLM? Second question also on tech, specifically for BA.

You're about two years into the implementation of Nevio. We've seen Finnair suggesting they're seeing 4% uplift in pricing, 10% to 15% uplift in ancillary sales from the implementation.

Is that sort of result achievable at British Airways or, more broadly, how do you see the RASK impact of your IT transformation from move to a modern retailing platform? Thank you.

Want to comment, Sean?

We are now selling the vast, vast majority of our direct sales through our new platform. In fact, 95% of our volume went through new ba.com in the January sale.

I think the numbers we're seeing are encouraging. One is CSAT is much higher.

I think two, things like look-to-book conversion has improved, and we've also seen better trade-up and better average unit revenues coming through. That's kind of the first real sort of significant test that we've put the volumes through, but the numbers are encouraging.

I think Finnair may be a little bit more advanced in adopting a Nevio compared to where we are, we work with them across the joint business and we do see some significant improvements that they're demonstrating on ancillaries. That would have been part of the kind of business case that we would have put together a couple of years ago when we embarked on this journey.

Encouraging signs both on CSAT and revenue conversion, trade-up, and ancillaries.

Okay. Your next question comes

Hi, Stephen.

Morning. I guess two questions.

Can you just talk about why, again, the excess pass below net leverage target is being widened? Is it to do with just the delivery or the capex step-up or is it to do with one eye on TAP?

That's the first question. Maybe for Sean, obviously BA is performing well in terms of margins, but I know from the investor day, I thought it was 2027 maybe when some of the investments come true that the underlying business probably be let's say more resilient by then.

Maybe just the market's good right now or the way the dollar's gone and stuff like that. Just talk about more the resilience of BA and when do you think it's kind of in full bloom, as it were?

That'd be great. Thank you.

Just starting on the kind of guidance on the distribution of excess cash, yeah, we widened the guidance to 1 times net leverage to 1.5. We've had fantastic results last year, really strong cash generation, and that gives us real flexibility to both distribute what we think has been a good return on capital, 9 9% yield this year in terms of what we're returning to shareholders, at the same time as strengthen our balance sheet further and invest heavily in the business.

I guess the main thing for that, though, is we've got our eye on the increase in capex that comes in the next few years overall. It's really making sure that we lock in the benefit we've had of a really strong year this year to really make sure that that continues, and that we're in a strong place to make sure we continue to give good shareholder returns and distribute excess cash.

That we've used this kind of really strong opportunity to set the balance sheet for that increasing capex and those future shareholder returns.

If I pick up on the BA question, Stephen. Look, I think we have delivered the 15% two years earlier than we set out about 14 months ago.

I think, as you said, some of the dynamics have probably worked in our favor, but I think we are seeing the benefits of transformation already. I think Luis mentioned the operational performance transformation, the benefits that gives to Net Promoter Scores of CSAT, but also the benefits it gives in terms of reducing non-performance related costs such as disruption.

We expect that to kind of flow through and carry on. Number two, I suppose, is the investment we've made in technology and new platforms.

I think we are very excited about the new digital capability. It's performing well, but we have more to come in the coming months as we roll out more of that functionality.

We've a new revenue management system again, which is showing encouraging results. We've a new payments platform, which is increasing optionality and also increasing conversion.

I think we will see more value accretion coming from those levers as we look into '26 and '27. I think the other angle I suppose which you're excited about is growth.

Nicholas mentioned capex, but we will see more long-haul aircraft come back into BA. Today, we're still a bit smaller than we were in 2019, and we feel we have a lot of opportunities to grow long haul, which again helps with margin growth, and also helps with things like seasonality because it works very well in winter with a number of markets that we could serve.

Finally, is the onboard product. We will complete the rollout of the Club Suite, we're at about 76% now at Heathrow.

The 787-9s are going in this year, the A380s start, and we see really strong commercial and customer performance on the back of completing those reconfigurations. I think we've made a lot of progress in what we said we would deliver on 15 months ago, but I'd agree there is still a lot of transformation that we will unlock in the next couple of years.

Great. Thanks, Sean.

Thanks, Nicholas.

Hey, good morning. Two questions from me.

Just first, I was wondering if you could give a bit more detail on what you're seeing in terms of engine durability, maybe supply chain and cost escalation. Just wondering across those three things, are things improving or not changing or getting worse?

Then, second, I know you mentioned it was strong, but I was wondering if you could please give a little bit more color on corporate and premium trends across the airlines. Thanks.

The first question about the supply chain, I think we talk about aircraft. The plan is that we are going to receive 17 aircraft this year.

We are pretty sure that the manufacturers, they are going to comply with this plan. In any case, we have some buffers in case we could have some delay.

We continue with the issue that everybody has with the engines. We are having problems with the GE engines, in particular, in Iberia, where they are suffering the lack of spare engines in the 330s.

We're having the problems with the GTF in Vueling, that, they have for average 16 aircraft grounded because of this situation. Also, in the case of BA, they still have 787 grounded because of the Rolls issue.

We hope that in the case of BA, this situation is going to be recovered in May. That's the plan that we have right now.

We continue working with the different OEMs to try to improve the situation, but I would say it's improving, but slowly. About the second

The second question was about corporate demand. We're trying to move away from comparing ourselves to 2019.

We think that's kind of ancient history now. All we can just say is actually we've seen corporate demand be strong in Q4, and in early days into Q1, it's been good as well.

Of course, that helps the yield curve, which is So it's been good, and it's been strong across all kind of sectors, not just finance, it's been good so far.

In particular, let's say, the Latin America premium market as a whole gained very, very strongly. For instance, compared to last year, the business market has increased in revenue 7% versus last year.

It's a bit like what we have been sharing with you when presenting our Flight Plan 2030. Madrid converting into the new Miami seems not only to indicate an increase in overall traffic, but in particular in premium traffic from Latin American countries.

That's helpful.

Thank you.

thanks very much. Nicholas, one for you on the unit costs guidance of -1% in 2026.

If we reference slide 13, gives a little bit of detail on the puts and takes across employees, supplies, ownership. I was wondering if you would be willing to flag maybe how you expect those to move in 2026, if there's anything in particular that you would see nicely down?

Obviously, FX is the big help. Seasonally, I assume H1 better than H2 because of FX.

Any other seasonality you might want to flag? Secondly, on Vueling, please.

I know that IAG obviously has a policy of asking CEOs to beg for growth, and clearly, Carolina's won the battle. I don't know if Carolina on, but I'd love to hear a bit more about the planned 50% passenger growth over the next decade in Vueling, where it is outside Barcelona, if there is, I assume there must be.

Clearly, what happened internally to secure that investment, and maybe a bit more detail on what I think is called RUMBO 2035. Thank you.

This last year, we finished with non-fuel unit costs up 2.8%. We've always said that that would moderate, and actually, under constant currency, it's up 1%, it's doing exactly what we said it would do.

It's moderating. We have got a benefit, though, as you say, of round about 2% benefit from FX, so that's why it's down 1% overall.

I think, just for information for everyone, if you look at the FX impact through this year coming, you're going to get a benefit in non-fuel costs, and you're going to get a headwind on revenue of round about in Q4 of round about 4%, in Q2 of about 3%, and in Q3 of about 1%, and then, hopefully, should be flat in Q4. That's the kind of shape of it.

If you look at the non-fuel costs, just the way it's phasing, you'll see there's a bit more of a kind of headwind in Q1 and probably in Q3 overall if you kind of phase it across the year. On a constant currency basis.

Okay. Good morning.

On Vueling plan, what we have presented is a plan for the next 10 years with 20 million passenger growth. The geographical focus is clearly Barcelona, domestic Spain, where we are leaders.

We have over 1 1/3 of the market of Spain domestic, and connects in Europe with Spain fundamentally through the 11 bases we have, Barcelona and plus other 10. This plan is very linked to the refleeting, which will restart our cost base.

Also, will give us more gauge, and this is extremely important, especially in the case of Barcelona. Barcelona is a constrained airport with expansions plans in '31 and '32, but we will have a 14% gauge increase with the new fleet in average.

Thanks, James.

Thanks.

Thank you, and good morning everyone. I just want to come back to AI, but now more on the opportunity for taking out costs, cuz, obviously we're starting to see companies at least announce large job cuts.

Today it was Block. I'm just wondering, what are your plans to achieve efficiencies through AI adoption, and kind of relate it to head count, are there any staff negotiations outstanding, as well?

Then secondly, just on the 3% capacity deployment. Obviously, very useful slide, 36, but can you give some just regional color in big pictures where that 3% gets deployed?

Thanks.

Artificial intelligence, you know that in our transformation, 80% of the projects are linked to technology, and artificial intelligence, for sure, is critical. We have projects, for example, in the area of maintenance, where artificial intelligence is going to help us to be much more efficient.

We have developed some tools, for example, in order to improve the planning that we do with our engines or our fleet. Artificial intelligence is going to help and is helping us also in the customer experience.

Also, we are analyzing ways to be more efficient, but the objective is not to reduce the headcount. It's more how we can use artificial intelligence to improve customer experience and to improve also the efficiency of all of our workforce.

Again, all the plans are based in technology. Artificial intelligence opens a big range of opportunity, and we are exploring all of them.

Just on the capacity 3%, we're giving you some in the appendix where it's going to be by airline overall, you can take a view on that. Look at North America, it's roughly in line with that, but better than 3% overall.

It's a bit better in that even again on Latin America, probably looking at 4.5% plus capacity on South Atlantic, and it's pretty flat across Europe. It's up in Asia Pacific and based, but, of course, it's a low base, Jarrod Castle (UBS): Thanks.

Any on staff negotiations, sorry?

We're in a relatively good position on all labor negotiations.

Morning everyone. First question Hello?

Hello?

Can you hear me?

Yes. Hello?

Can you hear me? Yes, we can hear you.

Okay. Sorry.

First question. You talk about strong bookings in the Q1 in your outlook, maybe a little bit more color on what that might mean in terms of booked revenue or pricing.

Could we see the same group ex-currency RASK in Q1 that we saw in Q4? Then just second question, on EBIT margins by airline, just wondering what's the full potential for some of these businesses?

When I look at your slide 11, the margins are already very high. Aer Lingus is at 11, BA is 15, Iberia 16, and Vueling 12.

Maybe where do you see the margin upside by individual airline going forward? Thanks a lot.

I think what we see now for the year, I think we have a lot of visibility for the first quarter, and we are for the first half in line with the plan. It's true that the first quarter, we are going to have the benefit of the Easter that is helping.

When we look at the summer, Q2 and Q3, we only have about 30% booked. What we see is, in general, positive.

Business traffic is growing and is helping the near-term bookings. When we look at the different geographies, we talked before about North Atlantic, but LATAM also remains strong for Iberia, and also we see a healthy performance in the Caribbean for BA.

Europe also is booked well. We see also an strong business demand in the case of BA.

The only region where we see some softness is Africa and Middle East. I think, in general, we are on plan, and we are confident for this year.

Just in terms of kind of full potential, of course, if very strong demand, you get low fuel price, of course, you can maybe go higher. I guess where we're focused on is delivering in the range we've already set out, that 12% to 15%.

In our view is, if we can keep towards the top end of that range, keep delivering at 15%, grow at 2% to 4% ASK, that's incredibly strong performance overall. Generates huge amounts of cash, great shareholder returns overall, allows us to invest in the business.

That's where we're going. If the benefits move in our favor and we get above that, that's great, but that's our aim is to be kind of delivering out at that top end of the range.

Right, thanks a lot.

Thanks, Harry.

Thanks very much. First question is around that margin question.

Obviously, last couple of years, you've been at the upper end of that 12% to 15% range. We're obviously still talking about more transformation at BA, loyalty will be growing above the rest of the group, obviously the trends in Iberia are very strong.

I'm just wondering is there any scope for that kind of 12 to 15 to be moved up or even the lower end of that to be moved up? Then on the second side, just around free cash.

Obviously at the moment, the outlook for that looks super strong, but capex is rising towards the end of the decade. Obviously you'll be intending to grow your top line.

I'm just kind of wondering do you envisage a scenario that in that higher capex environment, free cash is still able to be in and around the current level? Obviously some investors be somewhat worried that we have a couple years here of super strong free cash generation and in the 5, 6 year that maybe that kind of normalizes.

Thanks very much.

Just in terms of the margin targets, we're very comfortable where our margin targets are through the cycle at the moment, as I said earlier. Kind of if we keep growing at 2% to 4% ASKs and hit 15% margin, I can't think of any other airline that's going to be able to do that as well over that long time.

That's a really great performance overall. We're very comfortable with that as well overall.

Just in terms of the free cash flow, I said in my script actually that you've got the kind of capex is going up over time. Higher capex, when you're delivering good margins, means higher profits at good returns, should continue to be strong cash generation overall.

Actually, with the higher capex, actually, it should give you, over the longer term, even more confidence in our cash generation.

Thanks very much, Nicholas.

Thanks, Conor.

Good morning. Thanks for taking my questions.

Actually, just wanted to talk about your range again. Maybe I don't understand what do you really mean by through cycle?

What's the definition of that? RoIC is clearly well above your target at this point.

Both on margin and RoIC, if you can talk about what you mean through cycle. Into your growth algorithm, which you touched on in the slide, historically has been strong, but how do you think about that growth algorithm into the medium term?

That's the first question. Then, secondly, just going back on loyalty.

You talked about the Amex contract renewal had a positive impact on working capital. Can you give a little bit more details on what this renewal was, and how do you think about it into that 10% growth?

I'll start with the Loyalty Amex question. We're really pleased that we've signed another long-term agreement with Amex, which really underpins the profitability of our loyalty business overall.

That's been one of our great sources of growth is our partnerships, particularly on the kind of financial partnerships, and we'll talk a little bit more about that on the 3rd of June overall. It's commercially sensitive in terms of how much it benefited our working capital, but we just thought it was worth calling it out overall.

Definition of through the cycle, good question. I guess through the cycle just means that we think, with normal kind of cycles of ups and downs in economies and GDPs, of course it doesn't mean if you get another COVID event or something like that, but we just think through that kind of normal GDP fluctuations that you get over a kind of 10-year cycle, that's what we're trying aim our targets to be.

The growth algorithm?

I didn't quite follow your question on the growth algorithm, sorry.

As you think about the growth algorithm in the medium term, you talk about the 2% to 4% ASK growth and margins kind of remaining at that stable level, so that drives kind of 2% to 4% EBIT growth, is how to think about it. Then you get the strong cash generation and buybacks driving EPS growth of high single digits.

Is that the way to think about it?

That's a nice way of thinking about it.

Thank you.

Yes, good morning. Congrats on a strong year.

Firstly, how do you view the capacity backdrop on IAG routes this summer? It looks pretty constrained to me on the Atlantic overall, but I think Nicholas also commented on elevated capacity growth from Dublin.

Then secondly, domestic RASK was up over 8% in Q4 after declining in Q3 on trimmed capacity, what drove that? Thank you.

The plan that we have for this year is to increase capacity by 3%. When we look at the capacity that we are going to have in the different markets, for example, North Atlantic, the capacity that we see out of London is going to continue benign and we are going to have a flat environment.

Madrid is going to be different. We expect significant increases, although it's true that part of this is driven by Iberia because they are adding capacity in North Atlantic.

Also, they have now the new 321XLR and they are putting capacity there. Dublin is going to be a competitive market also, and they are going to have growth close to 10% during the summer.

South Atlantic, a little different. Capacity out of Madrid, we expect growth between 5%, 6% for the summer.

If we look at intra-Europe, for example, the capacity out of London on IAG routes is expected to be down in the first quarter, but up to between 2% and 3% in the second and third quarter. Barcelona is also a place where we see we are going to have growth in the summer around 5%, 6%.

Where we see more capacity is in places out of Madrid and Barcelona in Spain, but this is the global picture that we see.

Talking about the domestic, and in particular domestic Spain, it's true it's been very strong all along the past year, it's true that you have seen in Q4, in particular, an additional increase, which is relating to the fact that both with Iberia Express and with Vueling, we strengthen our relative position into the islands, in particular, and at the same time, Ryanair, in the winter, reduced capacity to the islands. The combination of these two factor made our position even stronger.

That will continue, you will see continuing in 2026. In Q1, for instance, is already producing itself, with an additional element, which is that you have seen the tragedy of the train accident in Spain, and that has led some corporations, for instance, to change their travel policy in domestic traffic and, in general, consumers to shift more to flights.

Therefore, you will see an underlying very strong demand throughout 2026 in domestic.

Thank you. Next

Good morning, everyone. If I could start with the sustainability of margins and return on invested capital, how sustainable do you think they are at these levels?

It sounds like you are very comfortable about that. What pushes you towards the middle of that sort of through-the-cycle range?

Is it just an economic downturn? Should we expect return on invested capital to moderate as the capex ramps up?

What impact does that capex ramp-up have on margin? Secondly, you've talked about the strength of premium leisure.

I was wondering how does the booking profile of premium leisure differ to sort of the network average and to non-premium leisure, in particular? Does it book earlier?

Does it book later? Is the sort of duration of stay longer or shorter?

Thanks.

I think the sustainability of the margin, good question. I think there's lots of variables.

You could say if the short-term downturn in the market, you could say if there's increasing tension across the Middle East, what happens then as well. Just the example we called out on the call there as well that I think most of you consensus at €5.2 billion and that includes a kind of €7.1 billion of fuel in there, and the fuel's gone up to €7.4 billion in the last few weeks as well.

Now hopefully we can pass some of that on to investors. I think we'll still retain our strong margins, but you get lots of kind of external variables that kind of impact that overall.

I think we're focused on making sure we commit to our transformation, commit to our growth plan, our disciplined growth plan as well, and that kind of always whatever circumstantial, nudge towards the most competitive margins that we can get overall.

The second question, premium leisure usually they book in advance. As we said before that business traffic is recovering.

The pattern of booking of business traffic usually bookings are late. In some cases, we are holding the nerve because we know that the demand is coming, and in some way, we are trading between premium leisure and business.

Maybe, Sean, you can comment.

I think what we have been seeing is strong late in business leisure or business bookings, certainly in Q1, and we try and protect inventory to capitalize on that. I think we've done some analysis and interestingly enough, people from an exec club who are traveling for premium leisure will be booking 60 days plus, in terms of travel plans.

Your business traveler will be more like 40 days. There's kind of a 2- to 3-week difference in the booking profile between one segment and the other.

As Luis said, it's one of the things that we look into next year to try and optimize because we see that late-booking business demand has been pretty robust in Q4 and we're seeing it in Q1 as well. Sorry,

how does premium leisure book relative to non-premium? Is it earlier or later?

I think it has a similar profile, actually. I think when people are planning a holiday and they're planning a hotel and planning an itinerary, they tend to plan further out.

We don't see that marked a difference between the premium leisure and the non-premium leisure side. We do see premium leisure actually tends to book more directly through our channels.

We do work with sort of online travel agents more for the non-premium side.

Thanks.

Morning everyone. Thanks for taking my questions.

The first one is on the BA and Iberia cost improvement and efficiency program that you guys have announced the last couple of years. Can you maybe quantify the improvements heading into 2026?

What are the improvements done? Is it just about efficiency and therefore depending on the aircraft delivery or is there something else we should be aware of?

That's the first one. Then the second one, coming back to the working cap effect from the loyalty, should we expect this to reverse heading into 2026?

Understand you're about to tell us more specifics, but how should we model this going forward? Thank you.

I think

your question, I'll just start on the working capital one. There was two things that happened on the cash flow this year.

One is we did benefit from the signing of the Amex, we can't quantify that over time. That gets smoothed across the P&L over the next X years that we've signed the contracts for, it doesn't reverse, you just don't get it again.

We did, though, pay kind of €450 million to the HMRC for this VAT case that we've got with HMRC that we feel very confident on. Actually, that comes into court later this year, but it probably won't get settled until 2027 probably, you should get a reversal, but it might take a number of years before it does reverse overall.

Just I think that hopefully that answers your question on that one overall. Just in terms of the cost improvements, we don't give kind of specific guidance on the kind of transformation savings that we're doing.

We only do that because there's lots of moving parts, both kind of inflation, the investments we're making, the growth we're having, and the kind of transformation. It's all moving parts.

You can see that actually if we're growing our kind of constant currency non-fuel costs by kind of 1%, and if you think kind of inflation is well above that as well, and we're making kind of good investments in the company at the same time, you can see there's a high level of transformation benefits that we're putting through the P&L at the same time.

Maybe to give a bit of color of what is to come still in our efficiency programs, clearly supplier cost is one where, through the strength of the group purchasing, for instance, we are having a lot of value creation in the coming months and years in our transformation plans that you will see coming through. Another key area of value creation there and in efficiency is utilization.

As you see, we've been evolving a lot through the years in reaching very high utilizations, and we still see room for improvement there. For instance, now with taking new fleet, we are progressively introducing them, and we could not, of course, maximize the utilization of this new fleet in the first year with all the XLRs, and in 2026, you will see a very significant improvement there in our utilization and productivity.

Thank you very much.

Morning, guys. Can I ask two questions?

One on competition on the South Atlantic. Clearly, premium goes really well for Iberia.

Can you talk about how competitive that is against the Latin American carriers who are emerging from Chapter 11 and getting their mojo, and yet Air Europa is wherever Air Europa is. How does that go?

Actually, in Latin America, you don't have a very wide footprint of partnerships locally, does that impact the power of loyalty in your ability to attract LATAM, Latin-originating premium passengers? Then the second question, at the risk of lighting an obvious blue touch paper, do you want to talk around the relations with the airports, Aena and their airport charges, Heathrow and their third runway, and Dublin and its cap, which is on, off, on, off.

I struggle to keep up. Thanks.

Sure that was three questions there, Andrew, but Marco's

I'm not very good with numbers! No comment.

Andrew, starting from the first one,

if you look at our Flight Plan 2030, you would see that our starting point is to maintain and foster a structural competitive advantage in cost versus our European competitors. We indicated that we have a 30% almost unit cost advantage versus the Air France and KLMs and Lufthansas in Europe.

At the same time, in LATAM, in fact, LATAM carriers have a much more competitive cost position. They have a cost position that is similar to ours, in some cases even some quarters slightly better than ours, but we have a structural revenue advantage over there.

We are the only carrier to Latin America that has, for instance, business class with full creation and doors, we are the only one having four stars Skytrax. All the others are three stars Skytrax.

We have, therefore, a premium revenue advantage that is also reflected by the fact that we've been building that through network coverage. We are the largest operator to Latin America by far and the one that has the most spread network, 18 countries are covered.

Therefore, that competitive advantage in product and network spread is reflected into a premium advantage that is remain. In fact, is building, what we are sharing is that our RASK premium, you saw the comparison of our RASK premium in 2019 and today is 34% higher.

These are competitive advantage that we are building, strengthening, and making stronger in time. Now certainly, as you mentioned, the loyalty program is a key driver of that.

We've mentioned, for instance, how much our top-tier customers have increased in the year. Maybe, Adam, you can give some color there.

Sure. I think it's interesting that South America is particularly strong in the loyalty space in terms of loyalty businesses, and we are seeing significant growth not only in terms of the membership, both in British Airways and Iberia, but also in terms of the deals that we're doing now there on the currency side with financial services and elsewhere.

Definitely, South America is a very bright spot in terms of the loyalty business and in terms of the collection of the currency and the drive to deliver or achieve the tiers. We're very pleased with what we're seeing down there.

About your third question about airports. In general, I think that the approach is the same with the different airports where we operate.

Heathrow, I think we don't want to have a debate about the cost of the project. What we are saying is that we need to look at the facts, and the facts are that Heathrow is the most expensive airport in the world.

You need to pay two or three times more than what you have to pay in other big European hubs. Heathrow has announced, it's not our number, they have in their web page an expansion plan of £49 billion, and we think that if that plan goes ahead, the passengers are going to pay double of what they are paying today.

We have done our internal analysis of the maximum level of investment that we think with the right phasing we can afford in order to have flat charges for the passenger, and we have reached £30 billion is our number, and we can be wrong. That's a reduction of 40% in the investment they are proposing.

In any case, what we are saying is if Heathrow is sure about what they are proposing and the extra passengers that we are going to have, I'm sure they don't have any problem to put a cap in the passenger charges. That at the end is the objective that we have.

We have a cap in what they are going to pay and we don't increase what they are paying today that I think is enough, then we support any project. Aena, we are working also with the DORA 3 and it's similar situation.

We support investment not at any price, and for sure, the investment brings associated more passengers, more revenues, with hope more efficiencies. Because of that, we are defending that the charges for the passenger cannot raise so much.

In the case of Dublin, good news that the cap has been removed. What we are waiting is for an urgent progress of the legislation.

That's all. I think it was the last question.

Thank you everyone for listening today. We are very pleased that we have delivered another great set of results, and we are looking forward very in a very positive way for 2026.

Thank you very much.