IAG Group and Rolls-Royce Report Record Financial Results Thanks to Aviation Sector Revival

The past financial year proved to be a breakthrough for European giants in the aviation and engineering sectors. International Airlines Group (IAG), the parent company of carriers such as British Airways, Iberia, and Aer Lingus, reported its highest-ever operating profit. The net result of €3.342 billion exceeded analysts' expectations, and the board decided to pay a dividend totaling €448 million. This success is the result of sustained demand for transatlantic travel and effective cost restructuring at individual carriers. Particularly impressive results were recorded by Aer Lingus, whose operating profit increased by 38%, and the Spanish Iberia with a 27% increase. Despite record revenues, the Spanish airline has begun negotiations with trade unions regarding voluntary employee departures (ERE), aiming to further optimize its employment structure in response to the company's changing operational profile. At the same time, IAG plans the largest capacity increase in 2026 precisely in the Iberia segment and the low-cost brand Level. The COVID-19 pandemic led the aviation industry to its greatest crisis in history, forcing governments to provide billion-dollar rescue packages, which now results in pressure for a quick return to profitability and repayment of obligations.Equally optimistic signals come from the Rolls-Royce conglomerate, which under the leadership of Tufan Erginbilgic has undergone a radical transformation. The company not only benefited from servicing aircraft engines but has become an unexpected beneficiary of artificial intelligence development. Its backup power systems are being ordered en masse for data centers worldwide. In response to excellent results, Rolls-Royce announced a share buyback plan worth $12 billion and raised its strategic targets for 2028. „Our transformation is gaining momentum and we are confident in sustainable growth across all our segments.” — Tufan Erginbilgic Despite euphoria in the stock markets, challenges remain regarding supply chain stability and rising aviation fuel costs. IAG notes that although passenger traffic in some segments has declined in volume, higher margins and ticket prices have allowed for record operating margins. Investors welcomed the return to regular dividend payments, signaling the definitive end of the post-COVID era of uncertainty in air transport.