British Airways' parent company International Airlines Group (IAG) said its operating profit rose 17.3% last year to a record €5bn (£4.4bn).
That's up from €4.3bn (£3.8bn) in 2024.
The company attributed its “record financial performance” to “long-term demand growth in our core markets and limited supply in a consolidating industry.”
IAG said its available seat kilometers – a measure of its capacity – grew by 2.4% in 2025.
He stated that British Airways' margin was 15.2% and added: “Our margins, as in previous years, remain significantly better than those of our global competitors.”
IAG chief executive Luis Gallego said: “In 2025 we report another year of exceptional performance, delivering our customers continued improvements in on-time performance and customer satisfaction.
“This industry-leading operating performance is translating into world-class financial results, with outstanding margins and superior return on capital.
“The execution of our strategy and transformation program is creating value for shareholders.”
He added: “Looking ahead, demand is strong, and research and market data indicate that travelers in our key markets within Europe and across the Atlantic remain committed to flying the same or more in 2026.”
IAG expects to increase its capacity by around 3% this year.
In November 2025, Gallego warned of a possible weakening of demand for transatlantic flights in economy cabins, but said on Friday that the company had “seen an improving trend in recent months in the North Atlantic trade, particularly in the case of BA (British Airways).”
IAG recorded revenue growth of 3.5%, which Gallego said was “driven by the strength of our brand and the successful execution of our strategy.”
British Airways made an operating profit of £2.2 billion, up from £2 billion in 2024.
IAG, which also owns airlines Iberia, Vueling, Aer Lingus and Level, said the group carried 121.6 million passengers in 2025, down 0.4% from 122.0 million in 2024.
For British Airways alone, passenger numbers increased by 0.4%, from 46.2 million to 46.3 million.
At IAG, revenue passenger kilometers (which takes into account the number of passengers and distance travelled) increased by 1.3%.
