International Consolidated Airlines (LSE: IAG), the owner of British Airways, has reported a soaring first-half profit as travellers continued to prioritise flying despite economic uncertainty.
Pretax profit for the six months to June 30 rose 67% to €1.75 billion from €1.05 billion a year ago. The group also topped expectations in the second quarter, delivering a €1.68 billion operating profit before exceptional items – comfortably ahead of the €1.43 billion analyst consensus.
Revenue for the half-year increased 8.0% to €15.91 billion, helped by a 2.7% rise in capacity. British Airways saw a 2.1% lift, Aer Lingus 8.6%, Iberia 1.2%, Vueling 3.3%, and Level 3.9%.
Despite early share gains, IAG stock turned lower in morning trade, down 2%, amid broader market nerves following US president Donald Trump’s tariff remarks overnight.
CEO Luis Gallego said the results reflect both “resilient demand for travel” and the group’s transformation efforts. He added that strong trading in core markets, including the North Atlantic, Latin America, and Europe, is helping offset softness in US-originating economy leisure demand.
IAG is now 57% booked for the second half, with booked revenue broadly in line with last year. The group reiterated confidence in delivering earnings growth, margin expansion, and strong shareholder returns via dividends and share buybacks.
“We remain focused on market-leading brands and our strongest geographies,” said Gallego, highlighting ongoing investments in fleet and technology.