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IAG Soars to Record Profits on Premium Demand
27 Feb
Summary
- IAG reported record operating profits of €5 billion on €33 billion revenue in 2025.
- Lower fuel prices and strong demand for premium services boosted airline performance.
- British Airways is increasing premium capacity to pre-pandemic levels.
International Airlines Group (IAG) announced record-breaking profits for 2025, with operating profit reaching €5 billion on revenues of €33 billion. This financial success is largely attributed to lower fuel expenses and sustained demand for premium travel options across its core markets.
Despite earlier concerns about potential impacts on travel to the US, IAG experienced robust trading throughout the year. The airline group highlighted strong performance in its premium cabins, a segment where competitors like Lufthansa and Air France are also investing heavily. British Airways, a key part of IAG, is increasing its high-premium-capacity aircraft.
IAG's profit margins of 15.1% are now at the top of its operational range, outperforming global competitors. The group also saw growth in ancillary revenues from maintenance, repair, and overhaul services, as well as its loyalty program. Looking forward, IAG anticipates a 3% increase in capacity, projecting continued support for travel trends, particularly in its primary markets.
