The IAG airline group, owner of British Airways and Iberia, announced record financial results for the past year. The company's net profit increased by over 22 percent, reaching €3.34 billion. Despite the holding's excellent financial health, the Spanish carrier Iberia has begun negotiations with trade unions regarding voluntary departures, aimed at adjusting the employment structure to new market demands.
Record Net Profit
IAG holding generated a net profit of €3.34 billion in 2025, representing growth of over 22 percent year-on-year.
Restructuring at Iberia
The Spanish airline is negotiating with unions a program of voluntary departures (ERE) for both flying and ground staff.
Aer Lingus Success
The Irish carrier recorded a 38% increase in operating profit, reaching €282 million.
International Airlines Group (IAG) closed 2025 with an unprecedented financial result, as confirmed by data published in London and Madrid. The holding's total net profit reached €3.342 billion, representing a 22.3% increase compared to the previous year. This success was driven by excellent results from all subsidiaries, including British Airways and Irish Aer Lingus, which saw its operating profit jump by 38% to €282 million. IAG's board decided to increase the dividend for shareholders, reflecting the group's strong capital position and positive forecasts for air travel demand in the upcoming summer season. Simultaneously with the record profit news, Spanish Iberia initiated a workforce restructuring process. The airline's management and trade unions have begun negotiations to implement a voluntary ERE procedure. The program is set to cover both cabin crew and ground staff. IAG holding representatives emphasize that this is not about drastic cost-cutting but about the necessary transformation of professional profiles in the face of digitalization and changing operational needs. Iberia plans the largest increase in offered seats within the group this year, which seems to contradict the personnel reduction plans, but the company argues this is necessary to rejuvenate the workforce and increase work efficiency. The aviation industry in Europe has been undergoing a process of intense consolidation since the beginning of the 21st century, when large holdings such as Air France-KLM and IAG itself were formed, the latter created in 2011 from the merger of British Airways and Iberia. The strong IAG results positively influenced stock market valuations, stabilizing the Spanish Ibex 35 index around a record level of 18,500 points. It is worth noting that the excellent financial condition allows the group to continue investing in the Level brand and modernizing the British Airways fleet, despite periodic declines in passenger numbers in some market segments. Iberia's situation is being closely watched by analysts, as it serves as an example of change management in a company that, despite its market successes, seeks to proactively restructure its human resources ahead of upcoming technological challenges.„Vamos a necesitar una transformación de los perfiles” (We will need a transformation of the profiles) — Luis Gallego
Mentioned People
- Luis Gallego — Chief Executive Officer (CEO) of International Airlines Group (IAG).