International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, Iberia, and Vueling, has announced its 2025 results, posting another strong full year, with net profit improving by more than 20%.
Growing profits
In 2025, IAG’s revenues were €33.2 billion ($39.1 billion), with net profit climbing 22.3% year-on-year (YoY) to €3.3 billion ($3.8 billion). Operating costs increased to €28.1 billion ($33.1 billion).
During the year, the group’s capacity, measured in available seat kilometers (ASKs), grew 2.4% YoY. Passenger revenue per ASK (PRASK) was flat – up 0.1% – while ex-fuel unit costs, or costs per ASK (CASK-ex), grew by 2.8% YoY. Total unit costs, CASK, were down 0.4% on the back of a 9.1% fall in fuel CASK.
The average load factor across the group was 0.9 percentage points lower.
Luis Gallego, the Chief Executive Officer (CEO) of IAG, said that the group had yet “another year of exceptional performance” as it improved its 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.”
IAG’s operating profit margin was 15.1%, a 1.3 percentage point improvement compared to 2024.
British Airways and Iberia leading the way
“The biggest drivers of the Group’s increase in operating profit for 2025 were Iberia and British Airways, which saw operating profit before exceptional items improve” by €286 million ($337.6 million) and £182 million ($245.5 million), respectively.
Both airlines saw “strong performance in their core markets and the benefits of lower fuel prices and favourable foreign exchange,” IAG said.
British Airways and Iberia were also the only two IAG airlines to improve their passenger unit revenues YoY, while Vueling’s lower revenues and higher capacity resulted in the Spanish low-cost carrier’s PRASK dropping by 3.6%.
IAG noted that while its passenger revenue grew 2.5% YoY in 2025, it saw “areas of softness versus the previous year, notably in the US point-of-sale economy segment, together with intra-European travel, particularly in the third quarter, with both showing improvement in the fourth quarter.”
By geographical area, PRASK was 0.5% lower in North America YoY, 2.8% lower in Europe, and 0.8% lower in Africa, the Middle East, and South Asia.
Passenger unit revenues were flat on domestic flights in Spain and the United Kingdom, improved by 2.1% in Latin America and the Caribbean, and by 2.6% in Asia-Pacific.
Network-wide, PRASK was 0.1% higher compared to 2024.
Rytis Beresnevicius
Higher margins in 2026
IAG’s outlook forecasts revenue growth in 2026, with the group expecting to deliver higher margins. The positive outlook is “supported by compelling market dynamics and secular long-term demand.”
The company expects ASKs to increase by around 3% and non-fuel unit costs to fall by 1%, including benefits from a favorable foreign exchange rate of around 2 percentage points. The company did not issue guidance for unit revenue performance except noting that “Q1 bookings are strong and with the additional benefit of an earlier Easter.”
Gallego concluded that the group is confident about its future, “with compelling market dynamics, long-term secular growth, and a clear plan to leverage our business model and deliver our strategy.”
