British Airways sees 48% profit surge despite Heathrow Fire disruption
British Airways has reported a sharp rise in profits for the first half of 2025, overcoming a £40 million financial hit from the temporary Heathrow Airport closure caused by a substation fire in March.
The airline’s underlying operating profit soared by 48% to £824 million for the six months ending June 30, up from £555 million during the same period last year. The growth was driven by increased flight capacity (+2.1%) and higher passenger revenues, according to parent company International Airlines Group (IAG), News.Az reports, citing foreign media.
The broader IAG group—which owns Aer Lingus, Iberia, and Vueling—also posted robust figures, with:
- Operating profit rising 43.5% to £1.88 billion
- Pre-tax profit up to £1.75 billion, compared to £1.05 billion a year earlier
IAG CEO Luis Gallego attributed the strong results to resilient travel demand and the group’s continued transformation efforts:
“We continue to benefit from a structural shift in consumer spending towards travel. These results give us confidence that we will deliver good earnings growth and margin progression for the full year.”
He also emphasized IAG’s ongoing investments in fleet upgrades and technology to boost operational efficiency and customer satisfaction.
Despite the positive earnings, British Airways confirmed in May that the March power outage at Heathrow cost the airline approximately £40 million. The disruption, caused by a blaze at the North Hyde substation, halted airport operations and affected over 270,000 passenger journeys.
IAG said it remains confident in delivering strong earnings growth for the full year, bolstered by high demand and ongoing strategic improvements. The group also reiterated its commitment to enhancing shareholder value through sustainable dividends and share buybacks.
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