International Airlines Group (IAG) has recorded a 44% annual increase in its operating profit, totalling €1.9bn in the six months to 30 June.

In this period, the group’s revenue jumped by 8% to €15.9bn, which it said reflected strong demand for its network and brands.

The firm, which owns brands including British Airways and Aer Lingus, also recorded a 43.8% increase in its profit after tax, which reached €1.3bn.

Chief executive officer at IAG, Luis Gallego, said: "Our strong performance in the first half of 2025 reflects the resilience of demand for travel and the success of our ongoing transformation, underpinned by the fundamental strengths of our group.

"We continue to benefit from the trend of a structural shift in consumer spending towards travel. We remain focused on our market leading brands and core geographies, where we continue to see robust performance, allowing us to invest in fleet as well as technology to improve operational efficiency and customer experience."

In its outlook for the rest of its financial year, IAG said that it is confident in being able to deliver good earnings growth and strong returns to shareholders.

It added that it is continuing to see robust demand for air travel across its brands, with 57% of seats sold across its airlines for the second half of the year.

Furthermore, AIG is confident for its longer-term outlook.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that while the airline industry has "historically been a difficult place to make money", IAG has soared above the competition.

He concluded: "IAG’s performance continued its skyward trajectory, with profits rising at high double-digit rates over the first half. Its largest airline, British Airways, accounts for around 45% of the group’s operating profits and is benefitting from favourable supply and demand dynamics.

"Overall, performance across its airlines has been impressive, and with both fuel and day-to-day costs now forecast to come in below previous guidance, profits look set to continue moving higher.

"Fears had mounted earlier in the year over a potential weakening in North Atlantic demand, but that hasn’t materialised and IAG’s shares have soared nearly 140% over the last 12 months. Despite the rally, a strong balance sheet and market position, generous shareholder returns, and strong growth prospects make the valuation look attractive, even compared to both the long-run average and its peers."

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