IAG Soars to Record £4.4 Billion Profit as Travel Demand Remains Robust
International Airlines Group (IAG), the parent company of British Airways and several other carriers, has announced a remarkable surge in profitability for the past year. The aviation giant reported an operating profit of 5.0 billion euros, equivalent to approximately £4.4 billion, marking a substantial 17.3 per cent increase compared to the previous year's figures.
Strong Performance Across Core Markets
This impressive financial result, up from 4.3 billion euros (£3.8 billion) in 2024, was attributed by IAG executives to sustained demand growth in key markets alongside constrained supply within a consolidating airline industry. The group's capacity, measured by available seat kilometres, experienced a modest rise of 2.4 per cent throughout 2025, indicating efficient operations amidst growing passenger interest.
British Airways emerged as a particularly significant contributor to the overall success, delivering an operating profit of £2.2 billion. This represents an increase from £2.0 billion in 2024, with the airline achieving a healthy margin of 15.2 per cent. IAG officials emphasised that these margins continue to significantly outperform those of global competitors, reinforcing the group's strong market position.
Leadership Optimism and Strategic Execution
Luis Gallego, Chief Executive of IAG, praised the exceptional performance, highlighting improvements in on-time operations and customer satisfaction. "This sector-leading operational performance is translating into world-class financial results," Gallego stated, noting outstanding margins and superior returns on capital. He credited the execution of the group's strategic transformation programme for creating substantial value for shareholders.
Looking forward, Gallego expressed considerable optimism regarding future demand. "Research and market data indicate that travellers in our core markets within Europe and across the Atlantic remain committed to flying the same or more in 2026," he remarked. Notably, he pointed to an improving trend in North Atlantic trading, particularly for British Airways, despite earlier concerns about softening demand in economy cabins.
Group-Wide Metrics and Future Projections
IAG, which also owns Iberia, Vueling, Aer Lingus, and Level airlines, reported a 3.5 per cent growth in overall revenue. The group transported 121.6 million passengers in 2025, a slight decrease of 0.4 per cent from the 122.0 million recorded in 2024. However, British Airways alone witnessed a modest increase in passenger numbers, rising from 46.2 million to 46.3 million.
In terms of future capacity, IAG anticipates raising its available seat kilometres by approximately 3 per cent this year. Revenue passenger kilometres across the group increased by 1.3 per cent, reflecting sustained travel activity. These figures underscore the resilience of the aviation sector and IAG's ability to capitalise on favourable market conditions.
