BA owner’s profits rise by 20% despite drop in passenger numbers last year

International Airlines Group (IAG), owner of British Airways and other airlines, reported a 20% increase in pre-tax profits to €4.5 billion (£3.9 billion) for 2025, despite a slight 0.4% decrease in passenger numbers to 121.6 million. The company attributed the strong performance to a robust transatlantic market and record operating profits at BA and Iberia. IAG plans to increase capacity by 3% in 2026 and return value to shareholders through a €448 million dividend and a €1.5 billion share buyback. CEO Luis Gallego expressed concern over the high cost of Heathrow's proposed third runway, emphasizing the need for global competitiveness. While passenger numbers dipped slightly, IAG anticipates continued strong demand in its core markets for 2026.

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