British Airways’ parent company, International Airlines Group (IAG), has announced a record operating profit of 5.0 billion euros (£4.4 billion) for the past year, marking a substantial 17.3 per cent increase.
This impressive figure, up from 4.3 billion euros (£3.8 billion) in 2024, was attributed by the airline giant to "long-term demand growth in our core markets and constrained supply in a consolidating industry". The group’s capacity, measured by available seat kilometres, saw a 2.4 per cent rise in 2025.
British Airways itself contributed significantly, reporting an operating profit of £2.2 billion, an increase from £2.0 billion in 2024. The airline’s margin stood at 15.2 per cent, with IAG highlighting that "Our margins, as in previous years, continue to be significantly better than those of our global competitors."
Luis Gallego, IAG’s chief executive, lauded 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.
This sector-leading operational performance is translating into world-class financial results, with outstanding margins and superior return on capital. Execution of our strategy and transformation programme is creating value for shareholders."
Looking ahead, Mr Gallego expressed optimism, noting: "Looking ahead, demand is strong, with research and market data indicating that travellers in our core markets within Europe and across the Atlantic remain committed to flying the same or more in 2026."
He also pointed to an "improvement in the trend over the last few months in North Atlantic trading, particularly in the case of BA (British Airways)," despite previous warnings about softening demand in economy cabins.
IAG, which also encompasses Iberia, Vueling, Aer Lingus, and Level airlines, saw its overall revenue grow by 3.5 per cent. The group carried 121.6 million passengers in 2025, a slight dip of 0.4% from the previous year’s 122.0 million. However, British Airways alone saw a modest increase in passenger numbers, from 46.2 million to 46.3 million. The group anticipates raising its capacity by approximately 3 per cent this year, with revenue passenger kilometres across IAG up by 1.3 per cent.
