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IAG Beats Profit Forecast, Premium Demand Lifts Earnings
IAG's 17.3% profit rise to €5 billion in 2025 was driven by strong premium transatlantic demand, constrained supply, and lower fuel costs, the company said.
- International Airlines Group posted a record operating profit of 5.0 billion euros last year, beating the 4.97 billion euro forecast.
- Driven by market dynamics, IAG pointed to long-term demand growth in core markets in Europe and the North Atlantic, constrained supply, lower fuel costs, and strong premium transatlantic travellers demand.
- Operationally, IAG recorded available seat kilometres growth of 2.4% in 2025, revenue passenger kilometres up 1.3%, while group passengers fell 0.4% to 121.6 million.
- The group announced it will return 1.5 billion euros to shareholders over the next 12 months, starting with a 500m euro buyback to be completed by the end of May, and expects to raise capacity by about 3% this year.
- Looking at the near term, executives noted Luis Gallego said `Since Q3 we have seen a rebound`, with strong British Airways bookings while IAG shares are up 36% amid sector gains.
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IAG Beats Profit Forecasts on Strong Premium Transatlantic Demand, Announces €1.5bn Shareholder Return
Aer Lingus and British Airways parent company IAG has posted annual profits that exceeded expectations, supported by lower fuel costs and sustained demand on key transatlantic routes, particularly in premium cabins. Across Europe, airlines have continued to benefit from strong premium traffic over the North Atlantic. Wealthier travellers are still spending on higher-end fares, even as demand for economy tickets to the United States has softened.…
Coverage Details
Total News Sources17
Leaning Left5Leaning Right0Center2Last UpdatedBias Distribution71% Left
Bias Distribution
- 71% of the sources lean Left
71% Left
L 71%
C 29%
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