IAG also owns Iberia, Vueling and Aer Lingus
International Airlines Group (IAG), the parent company of British Airways, has reported a 17.3% increase in its operating profit last year to a record 5.0 billion euros (£4.4 billion) – up from 4.3 billion euros (£3.8 billion) in 2024, reports BritPanorama.
The firm attributed its record financial performance to “long-term demand growth in our core markets and constrained supply in a consolidating industry.” IAG revealed that its available seat kilometres – a measure of its capacity – grew by 2.4% in 2025.
Furthermore, IAG noted that British Airways’ margin stood at 15.2%, indicating: “Our margins, as in previous years, continue to be significantly better than those of our global competitors.”
Luis Gallego, IAG’s chief executive, stated: “We reported another year of exceptional performance in 2025, delivering for our customers with continued improvements in on-time performance and customer satisfaction. This sector-leading operational performance is translating into world-class financial results, with outstanding margins and superior return on capital.” He added that the execution of the company’s strategy and transformation programme is creating value for shareholders.
Looking ahead, Gallego highlighted that demand remains strong, with research indicating that travellers in core markets within Europe and across the Atlantic are committed to flying the same or more in 2026. IAG anticipates increasing its capacity by approximately 3% this year.
In November 2025, Gallego had expressed concerns about potential weakening demand for transatlantic flights in economy cabins. However, his latest comments suggest an improvement in the trend over recent months, particularly for British Airways.
IAG posted revenue growth of 3.5%, attributed to the strength of its brand and the successful execution of its strategy. British Airways specifically delivered an operating profit of £2.2 billion, up from £2.0 billion in 2024, with passenger numbers climbing modestly by 0.4% from 46.2 million to 46.3 million.
Meanwhile, Irish carrier Aer Lingus, also under IAG’s ownership, secured an operating profit of €282 million (£247 million), rising from €205 million (£179 million) the previous year, with passenger figures increasing by 2.9% from 11.0 million to 11.3 million.
Overall, IAG, which additionally owns Iberia, Vueling, and Level airlines, reported the group transported 121.6 million passengers in 2025, reflecting a slight decline of 0.4% from 122.0 million in 2024. Throughout IAG, revenue passenger kilometres – which factor in the number of passengers and the distance travelled – rose by 1.3%.
This report reflects a remarkable year for IAG amidst evolving market dynamics. The airline group appears well-positioned to navigate potential challenges while capitalizing on sustained demand in key markets.
