Home / Business and Economy / IAG Soars: Record Profits Despite Fewer Flyers
IAG Soars: Record Profits Despite Fewer Flyers
27 Feb
Summary
- IAG reported nearly £4bn in pre-tax profits, a 20% increase year-over-year.
- The airline group achieved record operating profits with margins over 15%.
- Premium leisure bookings on North American routes for 2026 are performing strongly.
International Airlines Group (IAG) reported exceptional financial performance for 2025, with pre-tax profits climbing 20% to €4.5bn (£3.9bn). The airline conglomerate, which includes British Airways and Iberia, achieved record operating profits, demonstrating margins above 15% for these key airlines.
Despite a minor 0.4% reduction in overall passenger numbers, IAG's chief executive noted strong demand in the lucrative transatlantic market. Forward bookings for premium leisure travel on North American routes in 2026 are particularly encouraging. The group plans to increase its capacity by approximately 3% in the current year.
While supporting growth initiatives like Heathrow's third runway, IAG cautioned on its substantial cost, emphasizing the need for affordability to maintain global competitiveness. The company is also set to reward shareholders with a substantial dividend and an additional share buyback program, following a previously announced one.
IAG carried 121.6 million passengers in 2025, a slight decrease from the previous year. The airline group anticipates continued strong demand across its core European and transatlantic markets throughout 2026.
