IAG Posts Record 2025 Profit as BA, IB Lead Results

‍LONDON — International Airlines Group (IAG), parent company of British Airways (BA), Iberia (IB), Aer Lingus (EI) and Vueling (VY), reported record results for 2025. Strong pricing and improved operations drove profitability.

Group revenue increased 3.5% to €33.213 billion, and operating profit before exceptional items rose 13.1% to €5.024 billion, resulting in a 15.1% operating margin.

IAG attributed its strongest profit growth to IB and BA. Iberia’s operating profit before exceptional items increased by €286 million, while British Airways’ rose by £182 million, supported by strong core market performance, lower fuel costs, and favorable foreign exchange. Iberia achieved a 16.2% operating margin, with British Airways at 15.2%.

Operationally, IAG reported on-time performance improved to 82.4%, up 4.6 points year over year, along with higher customer satisfaction scores. These improvements support the group’s focus on premium demand across key markets.

Future outlook

For 2026, IAG expects disciplined growth, with capacity planned to increase by approximately 3% over 2025. Capital expenditure is projected at around €3.6 billion, subject to deliveries, and free cash flow after gross capex is expected to exceed €3 billion.

IAG’s 2025 results demonstrate that the Europe–North Atlantic premium-focused strategy continues to outperform in a supply-constrained market. BA and IB are converting core-market strength into higher margins, while improved operational reliability reduces hidden costs that affect unit revenue.

For 2026, the main consideration is whether disciplined capacity growth and sustained premium demand can offset the effects of normalizing fuel and foreign exchange as competitors increase capacity.