Aer Lingus' parent company posts record profits

The company attributed its “record financial performance” to “long-term demand growth in our core markets and constrained supply in a consolidating industry”.
Aer Lingus' parent company posts record profits

By Neil Lancefield, Press Association Transport Correspondent

Aer Lingus' parent company, International Airlines Group (IAG), said its operating profit increased by 17.3 per cent last year to a record €5 billion.

That is up from €4.3 billion in 2024.

The company attributed its “record financial performance” to “long-term demand growth in our core markets and constrained supply in a consolidating industry”.

IAG also owns British Airways(PA)

IAG said its available seat kilometres – a measure of its capacity – grew by 2.4 per cent in 2025.

IAG chief executive Luis Gallego said: “We reported another year of exceptional performance in 2025, delivering for our customers with continued improvements in on-time performance and customer satisfaction.

“This sector-leading operational performance is translating into world-class financial results, with outstanding margins and superior return on capital.

“Execution of our strategy and transformation programme is creating value for shareholders.”

He added: “Looking ahead, demand is strong, with research and market data indicating that travellers in our core markets within Europe and across the Atlantic remain committed to flying the same or more in 2026.”

IAG expects to raise its capacity by about 3 per cent this year.

In November 2025, Mr Gallego warned of a potential softening of demand for transatlantic flights in economy cabins, but said on Friday the company has “seen an improvement in the trend over the last few months in North Atlantic trading, particularly in the case of BA (British Airways)”.

IAG recorded revenue growth of 3.5 per cent, which Mr Gallego said was “driven by the strength of our brand and the successful execution of our strategy”.

IAG, which also owns the Iberia, Vueling, Aer Lingus, and Level airlines, said the group carried 121.6 million passengers in 2025, down 0.4 per cent from 122.0 million in 2024.

Across IAG, revenue passenger kilometres – which takes into account the number of passengers and the distance flown – was up 1.3 per cent.

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