International Airlines Group (IAG) reported a 191% surge in Q1 operating profit to €198 million, driven by strong passenger demand, increased cargo revenue, and disciplined cost management. The group’s loyalty arm, IAG Loyalty, also expanded significantly, with Avios adoption growing and new customer benefits introduced across partner airlines.
(Image Source)
IAGIAG Reports Strong Q1 2025 Results with Focus on Growth and Loyalty
International Airlines Group (IAG) has reported a robust financial performance for the first quarter of 2025, reflecting a strong start to the year amid continued recovery in global air travel. The group posted significant growth in operating profit, strategic investments in its fleet, and notable advancements in its loyalty division, IAG Loyalty.
Financial Highlights
-
Operating Profit: €198 million, up 191.2% year-on-year
-
Operating Margin: Improved to 2.8%, a 17 basis point increase
-
Passenger Unit Revenue: Rose by 3.2%, led by strong North Atlantic demand
-
Cargo Revenue: Increased by 12.4% with solid yield performance
-
Other Revenue: Up 41.2%, driven by Iberia’s MRO growth and BA Holidays’ performance
-
Non-Fuel Unit Costs: Up 8.8%, due to FX impacts, non-airline business costs, and investments in customer service
Strategic Developments
IAG continues to strengthen its long-term outlook by investing in its fleet, confirming orders for 53 new long-haul aircraft from both Airbus and Boeing. The group also reduced its financial liabilities significantly, repaying over €1 billion in debt during the quarter. This included a major VAT-related payment to HMRC, a portion of which has already been recovered. These moves reinforce IAG’s focus on financial discipline and future readiness.
Loyalty & Avios Program Growth
IAG Loyalty, the group’s loyalty arm, continues to thrive as a key revenue contributor. In 2024, it delivered £420 million in profit, up from £367 million the year before. The Avios currency remains central to this success, with growing adoption across partner airlines, including Loganair joining in 2025 as the seventh Avios airline. New initiatives like Iberia’s Club Iberia Plus, modeled after British Airways’ Executive Club enhancements, offer more flexibility in earning status and benefits, reflecting IAG’s focus on rewarding loyalty and deepening member engagement.
Outlook for 2025
Looking ahead, IAG plans to increase its capacity by approximately 7% in Available Seat Kilometres (ASKs) for the full year, capitalizing on anticipated demand during the summer travel season—typically the most profitable for European carriers. Continued investment in service, fleet, and loyalty ensures the group is well-positioned for sustained growth.
Conclusion
IAG’s first quarter of 2025 showcases a company with strong momentum, balancing short-term performance with long-term strategic initiatives. With solid financials, an expanding loyalty ecosystem, and a refreshed fleet pipeline, the group is reinforcing its leadership in global aviation while driving customer value through Avios and loyalty innovation.
Source: IAG
Disclaimer: Press release
© Press Release 2025
Send us your press releases to news@globalloyalty.org
Press releases originate from external third-party providers. This website does not have responsibility or control over its content, which is presented as is, without any alterations. Neither this website nor its affiliates guarantee the accuracy of the views or opinions expressed in the press release.
The press release is intended solely for informational purposes and does not offer tax, legal, or investment advice, nor does it express any opinion regarding the suitability, value, or profitability of specific securities, portfolios, or investment strategies. Neither this website nor its affiliates are liable for any errors or inaccuracies in the content, nor for any actions taken based on it. By using the information provided in this article, you agree to do so at your own risk.
To the maximum extent permitted by applicable law, this website, its parent company, subsidiaries, affiliates, shareholders, directors, officers, employees, agents, advertisers, content providers, and licensors shall not be liable to you for any direct, indirect, consequential, special, incidental, punitive, or exemplary damages, including but not limited to lost profits, savings, and revenues, whether in negligence, tort, contract, or any other theory of liability, even if the possibility of such damages was known or foreseeable.
The images used in press releases and articles provided by 3rd party sources belong to the respective source provider and are used for illustrative purposes in accordance with the original press releases and publications.
Disclaimer: Content
While we strive to maintain accurate and up-to-date content, Global Loyalty Organisation Ltd. makes no representations or warranties of any kind, express or implied, about the correctness accuracy, completeness, adequacy, or reliability of the information or the results derived from its use, not that the content will meet your requirements or expectations. The content is provided “as is” and “as available”. You agree that your use of the content is at your own risk. Global Loyalty Organisation Ltd. disclaims all warranties related to the content, including implied warranties of merchantability, fitness for a particular purpose, non-infringement, and title, and is not liable for a particular purpose, non-infringement, and title, and is not liable for any interruptions. Some jurisdictions do not allow the exclusion of certain warranties, so these jurisdictions may not apply to you. Global Loyalty Organisation Ltd. Reserves the right to modify, interrupt, or discontinue the content without notice and is not liable for doing so.
Global Loyalty Organisation Ltd. shall not be liable for any damages, including special, indirect, consequential, or incidental damages, or damages for lost profits, revenue, or use, arising out of or related to the content, whether in contract, negligence, tort, statute, equity, law, or otherwise, even if advised of such damages. Some jurisdictions do not allow limitations on liability for incidental or consequential damages, so this limitation may not apply to you. These disclaimers and limitations apply to Global Loyalty Organisation Ltd. and its parent, affiliates, related companies, contractors, sponsors, and their respective directors, officers, members, employees, agents, content providers, licensors, and advisors.
The content and its compilation, created by Global Loyalty Organisation Ltd, are the property of Global Loyalty Organisation Ltd. and cannot be reproduced without prior written permission.
