British Airways Owner Faces Profit Dip Amid Travel Market Slowdown

International Airlines Group (IAG), the parent company of British Airways and Spanish carrier Iberia, reported a slight decline in net profit for the third quarter, attributing the dip to a slowdown in the United States market and increased competition across Europe.

According to the company’s statement released on Friday, IAG’s profit after tax dropped by 2.3 per cent to €1.4 billion (£1.22 billion) compared with the same July–September period last year.

“Overall, it was a good performance, building upon a record third quarter in 2024,” the group stated, noting that the results reflected expected fluctuations in major markets.

“As anticipated, the North Atlantic market experienced some softness, and unit prices across our airlines were lower within the European region,” IAG added.

Total revenue for the quarter remained stable at €9.3 billion, reflecting strong passenger volumes despite reduced yields in some routes.

Chief Executive Luis Gallego expressed optimism about the company’s broader performance, saying IAG is still “on track to deliver another year of growth in revenues, profit and shareholder returns.”

Gallego reaffirmed that the group’s diversified portfolio, which includes airlines such as Aer Lingus and Vueling alongside British Airways and Iberia, continues to provide resilience amid shifting global travel demand.

While the North American market showed signs of cooling, European carriers have been contending with tighter competition, inflationary pressures, and fluctuating consumer demand. Despite these challenges, IAG emphasised its long-term strategy of cost efficiency and capacity management to sustain profitability in a competitive environment.