▶ IAG Posts Record €3.342 Billion Profit for 2025

International Airlines Group (IAG)—the parent company of British Airways, Iberia, Vueling, Aer Lingus, and LEVEL—has closed an exceptional 2025 fiscal year with profits of €3.342 billion, representing a 22.3% increase over the previous year. This result is driven by robust demand in its core markets and industry-leading operational performance.

Record Financial and Operational Results

The holding company reported revenues of €33.213 billion, up 3.4% compared to 2024. Coinciding with these milestones, the group announced an 8.9% increase in its dividend.

Key Profitability Indicators

Operating Profit: Reached €5.024 billion, a 13.1% increase.
Operating Margin: Stood at 15.1%.
Net Debt: Significantly reduced from €7.517 billion to €5.948 billion, bringing the net debt/EBITDA ratio to 0.8x.

Despite a slight 0.4% decline in passenger volume (121.56 million), passenger revenue grew by 2.5%, totaling €28.969 billion.

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Airline Performance: Iberia Leads in Margins

The performance of the group’s subsidiaries showed a mostly upward trend, with Iberia standing out for its financial efficiency.

Airline	Passengers (Millions)	Pass. Var.	Operating Profit
British Airways (BA)	46.3	+0.4%	€2.546B (+8.8%)
Iberia	24.8	-4.1%	€1.313B (+27%)
Vueling	38.2	+0.1%	€393M (-1.7%)
Aer Lingus	11.3	+2.9%	€282M (+37%)
LEVEL	0.9	+6.3%	N/A

Iberia recorded the holding company’s best operating margin at 16.2%, finishing one percentage point ahead of British Airways. Conversely, Vueling was the only carrier to post a year-on-year decline, with a slight €7 million drop in profit.

Market Analysis and Logistics Efficiency

The Latin American and Caribbean market established itself as the group’s growth engine, with passenger revenue increasing by 6.7%. This region was the only market to improve its load factors, transporting 7.5 million people (+3.2%).

In contrast, the domestic markets (Spain and the United Kingdom) and intra-European routes showed signs of stagnation in passenger volume, although the domestic market maintained the highest load factor at 89.3%.

Costs and Fleet

Fuel: Expenditure fell 6.9%, totaling €7.083 billion.
Labor: Expenses rose 6.3% due to a 3.2% increase in the average headcount (75,871 employees).
Fleet: IAG ended the year with 627 aircraft in service, a 4.3% increase over the 601 active aircraft in 2024.

2026 Outlook

IAG management, led by CEO Luis Gallego, maintains an optimistic outlook for the current fiscal year. The group plans to increase capacity by 3%, prioritizing its core markets in the Americas and Europe. This strategy is backed by “attractive market dynamics” and structural demand that remains strong over the long term.