The IAG airline group, owner of brands such as British Airways, Iberia, and Aer Lingus, reported record financial results for 2025. The holding's net profit increased by over 22 percent, reaching 3.34 billion euros. Despite operational challenges, strong demand for air travel allowed the company to beat market forecasts and announce an increased dividend for shareholders, confirming the stable condition of the sector.
Record Net Profit
The IAG group achieved a net profit of 3.34 billion euros for 2025, representing an increase of over 22% compared to the previous year.
Success of Aer Lingus and Iberia
Irish Aer Lingus increased its operating profit by 38%, and Spanish Iberia by 27%, reaching historic profitability peaks.
Restructuring at Iberia
Despite profits, Iberia is negotiating with unions a program of voluntary employee departures to transform its employment structure.
Dividend Payout for Shareholders
The management announced the allocation of 448 million euros for dividends, confirming the company's strong cash position.
The International Airlines Group (IAG) aviation holding closed 2025 with historic financial success, generating a net profit of 3.342 billion euros. This result represents a 22.3 percent year-on-year increase and exceeds stock market analysts' expectations. The key growth drivers turned out to be Spanish Iberia and Irish Aer Lingus, which recorded significant jumps in operating profits. Iberia achieved a record operating result, which increased by 27 percent, while Aer Lingus improved its statistics by 38 percent, reaching 282 million euros. This success is the result of unwavering demand for transatlantic flights and effective cost optimization across the entire capital group. Following the crisis caused by the COVID-19 pandemic in 2020, which led to an almost complete halt in global air traffic, the industry underwent deep restructuring aimed at making costs more flexible.The group's management announced plans to pay a dividend totaling 448 million euros, which is a clear signal to investors of the company's financial stability. The holding's directors point to strong booking dynamics for the coming months, allowing for optimistic forecasts regarding further capacity increases. The largest increase in seat supply is planned for the Iberia and Level brands, which is intended to solidify the group's position in the Spanish market and connections with Latin America. It is worth noting that these results were achieved despite some declines in the total number of passengers for some of the group's carriers, suggesting an increase in margin per individual ticket. Parallel to the announcement of financial successes, negotiations with trade unions have begun at the Spanish Iberia branch. The subject of the negotiations is a request for voluntary departures (ERE) for cabin and ground staff. The company argues that the transformation of professional profiles is necessary for further technological development and maintaining competitiveness. Although this process is intended to be voluntary, it shows that even during a period of record profits, the group is looking for ways to optimize its employment structure. ERE at Iberia aims to adapt human resources to the holding's modern operational models. „Vamos a necesitar una transformación de los perfiles” (We will need a transformation of the profiles) — Luis Gallego In summary, IAG is using the current economic climate to strengthen its financial foundations. The strategy of focusing on profitable Southern European and Atlantic markets is yielding tangible benefits, despite geopolitical uncertainty and rising fuel costs. Investors welcomed this news enthusiastically, hoping for continued high profitability in the coming quarters of 2026.
Mentioned People
- Luis Gallego — Chief Executive Officer of International Airlines Group (IAG)