IAG Achieves Record £4.4 Billion Profit in 2025, Fueled by Robust Demand and Strategic Execution
International Airlines Group (IAG), the parent company of British Airways, has unveiled a remarkable financial performance for 2025, posting a record operating profit of 5.0 billion euros (£4.4 billion). This represents a significant 17.3% increase from the 4.3 billion euros (£3.8 billion) recorded in 2024, highlighting the group's resilience and growth in the aviation sector.
Strong Market Conditions and Operational Excellence Drive Success
The firm attributed this record financial performance to long-term demand growth in its core markets and constrained supply within a consolidating industry. IAG's available seat kilometres, a key measure of capacity, grew by 2.4% in 2025, supporting its expansion efforts. Notably, British Airways achieved a margin of 15.2%, with IAG emphasizing that its margins continue to significantly outperform those of global competitors.
Leadership Insights and Future Outlook
Luis Gallego, IAG's chief executive, commented on the results, stating, "We reported another year of exceptional performance in 2025, delivering for our customers with continued improvements in on-time performance and customer satisfaction." He added that this sector-leading operational performance is translating into world-class financial results, with outstanding margins and superior return on capital. Gallego highlighted that the execution of IAG's strategy and transformation programme is creating substantial value for shareholders.
Looking ahead, demand remains strong, with research and market data 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 cautioned about a possible weakening of demand for transatlantic flights in economy cabins, but he revealed on Friday that the firm has seen an improvement in this trend over recent months, particularly for British Airways.
Revenue Growth and Airline-Specific Performance
IAG posted revenue growth of 3.5%, which Gallego attributed to the strength of its brands and successful strategy execution. British Airways delivered an operating profit of £2.2 billion, up from £2.0 billion in 2024, with passenger numbers climbing by 0.4% from 46.2 million to 46.3 million.
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. Passenger figures at Aer Lingus increased by 2.9% from 11.0 million to 11.3 million.
IAG, which additionally owns the Iberia, Vueling, and Level airlines, reported that the group transported 121.6 million passengers in 2025, a slight decrease of 0.4% from 122.0 million in 2024. However, revenue passenger kilometres, which factor in the number of passengers and distance travelled, rose by 1.3% throughout IAG, indicating efficient use of capacity and sustained travel demand.
