The year 2025 brought record financial results for International Airlines Group (IAG) and the Rolls-Royce conglomerate. The owner of British Airways and Iberia reported a net profit of 3.342 billion euros, representing an increase of over 22 percent compared to the previous year. Simultaneously, Rolls-Royce Power Systems announced the construction of a new plant in Friedrichshafen, driven by unprecedented demand for combat vehicle engines and emergency power systems amid European rearmament.

Record Net Profit for IAG

The parent group of British Airways earned a net profit of 3.342 billion euros in 2025, representing a 22.3 percent year-on-year increase.

Rolls-Royce Investments

The conglomerate is building a new factory in Germany to meet record orders for military engines and power systems.

Restructuring at Iberia

Despite profits, the Spanish airline is negotiating a voluntary departure program (ERE) for staff with trade unions.

The IAG Group, which includes carriers such as British Airways, Iberia, and Aer Lingus, ended 2025 with a historic financial result. Despite operational challenges and fluctuations in passenger numbers, the company's net profit increased by 22.3 percent, reaching a level of 3.342 billion euros. Particularly impressive results were presented by the Irish Aer Lingus, recording a 38 percent jump in operating profit, and Iberia, whose profit increased by 27 percent. The group's management proposed the payment of a supplementary dividend of 0.05 euros per share, which, combined with previous tranches, will translate into 448 million euros paid out to shareholders. After the crisis caused by the COVID-19 pandemic in 2020, the global aviation market underwent deep restructuring. Major capital groups, such as IAG, consolidated the market, allowing them to manage margins more effectively under conditions of limited transatlantic flight supply. Despite excellent financial health, the Spanish Iberia, in cooperation with trade unions, has begun negotiations regarding an ERE, a voluntary departure program. The restructuring is to affect both cabin and ground staff, with the goal of adapting the competency profile of employees to the progressing digitalization of aviation services. The CEO of IAG emphasized that despite the records, the industry requires continuous transformation to maintain competitiveness against rising fuel costs and environmental fees. „Our 2025 results show the resilience of our group and the strength of our brands against a volatile market backdrop.” — Luis Gallego In parallel, the British conglomerate Rolls-Royce is experiencing a period of intense growth in the Power Systems sector. The company approved plans to build a new factory in Friedrichshafen on Lake Constance, responding to a sharp increase in orders for defense system engines. A particular driver for the company has been the demand for propulsion units for armored vehicles and power generators serving as emergency power supplies. The Lake Constance region is thus becoming a key defense hub for Germany, and the company's shares on the stock exchange reacted to these reports with clear gains, confirming investor confidence in the chosen diversification strategy.

Mentioned People

  • Luis Gallego — Chief Executive Officer of International Airlines Group (IAG).