British Airways’ parent company posts record profits

British Airways’ parent company International Airlines Group (IAG) said its operating profit increased by 17.3% last year to a record 5.0 billion euros (£4.4 billion).

That is up from 4.3 billion euros (£3.8 billion) in 2024.

The company attributed its “record financial performance” to “long-term demand growth in our core markets and constrained supply in a consolidating industry”.

IAG said its available seat kilometres – a measure of its capacity – grew by 2.4% in 2025.

It stated that British Airways’ margin was 15.2%, adding: “Our margins, as in previous years, continue to be significantly better than those of our global competitors.”

IAG chief executive Luis Gallego said: “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.”

He added: “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.”

IAG expects to raise its capacity by about 3% this year.

In November 2025, Mr Gallego warned of a potential softening of demand for transatlantic flights in economy cabins, but said on Friday the company has “seen an improvement in the trend over the last few months in North Atlantic trading, particularly in the case of BA (British Airways)”.

IAG recorded revenue growth of 3.5%, which Mr Gallego said was “driven by the strength of our brand and the successful execution of our strategy”.

British Airways made an operating profit of £2.2 billion, up from 2.0 billion in 2024.

IAG, which also owns the Iberia, Vueling, Aer Lingus and Level airlines, said the group carried 121.6 million passengers in 2025, down 0.4% from 122.0 million in 2024.

For British Airways alone, passengers numbers increased by 0.4% from 46.2 million to 46.3 million.

Across IAG, revenue passenger kilometres – which takes into account the number of passengers and the distance flown – was up 1.3%.