International Airlines Group (IAG), the parent company of British Airways, reported better-than-expected financial results for 2025, posting an operating profit before exceptional items of €5.02 billion. The figure represents a 13 percent year-on-year increase and came in slightly above analyst forecasts.
The improvement in profitability was supported by lower fuel costs and continued strong demand across North Atlantic routes, particularly in premium cabins. For European network carriers, the transatlantic market remains one of the most significant revenue drivers, with high-yield traffic continuing to underpin margins.
However, the absence of clear profit guidance for 2026 and potential volatility in fuel prices raised concerns among investors. Following the announcement, IAG shares fell by approximately 6 percent during the trading session.
The group also announced plans to return a total of €1.5 billion to shareholders over the next 12 months, beginning with a €500 million share buyback program. Despite the solid earnings performance, market focus has shifted toward the sustainability of profitability in the year ahead.
