British Airways has delivered a remarkable 48% surge in underlying operating profits despite facing a £40 million blow from Heathrow Airport's closure in March. The carrier's half-year earnings jumped to £824 million for the six months ending June 30, compared to £555 million in the same period last year.
The impressive financial performance came as British Airways ramped up its flight programme, increasing capacity by 2.1% and boosting passenger revenues. The airline managed to overcome the significant disruption caused by a substation fire that forced Heathrow's temporary closure earlier this year.
Parent company soars higher
International Airline Group (IAG), which owns British Airways alongside Aer Lingus, Iberia and Vueling, reported an even stronger performance across its portfolio. The aviation giant posted a 43.5% rise in earnings to £1.88 billion for the first half of 2025.
Pre-tax profits at IAG rose sharply to £1.75 billion from £1.05 billion a year ago. The results demonstrate the group's ability to capitalise on sustained demand for air travel across its key markets.
Travel demand drives growth
IAG chief executive Luis Gallego highlighted the underlying strength of the travel sector in driving the company's success. He said the strong performance reflects "the resilience of demand for travel and the success of our ongoing transformation, underpinned by the fundamental strengths of our group."
Gallego emphasised that the company continues to benefit from a structural shift in consumer spending towards travel. The executive noted that robust performance in core geographies allows IAG to invest in fleet expansion and technology improvements.
Future investment plans
The airline group remains focused on its market-leading brands and core geographical markets, where it continues to see strong performance. This success enables continued investment in both fleet renewal and technology upgrades aimed at improving operational efficiency and customer experience.
Gallego expressed confidence that the results position IAG to deliver good earnings growth and margin progression for the full year. The company plans to create shareholder value through its sustainable dividend policy and share buyback programme.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
