British Airways sees profit surge despite major disruption from Heathrow fire

In an impressive financial turnaround, British Airways, a subsidiary of International Airline Group (IAG), reported a significant 48% rise in underlying operating profits amounting to £824 million for the first half of 2025. This growth comes in the wake of a challenging period marked by a £40 million operational setback due to a temporary closure of Heathrow Airport caused by a fire at the North Hyde substation in March. The closure disrupted over 270,000 air passenger journeys, posing substantial challenges for the airline during a peak travel period. Despite the incident, British Airways managed to ramp up its flight capacity by 2.1%, which contributed to a boost in passenger revenues. Luis Gallego, the chief executive of IAG, spoke positively about the airline’s performance, emphasizing the resilience of travel demand and the group’s ongoing transformation efforts. He indicated that the airline is benefiting from a broader trend of consumers shifting their spending towards travel, allowing British Airways to concentrate on its core markets where it has seen robust performance. The IAG group, which includes other airlines like Aer Lingus and Iberia, reflected a similar trend with a 43.5% rise in its combined earnings to £1.88 billion during the same period, further complemented by a sharp increase in pre-tax profits from £1.05 billion to £1.75 billion compared to the previous year. The growth in profits not only reflects recovery from the impacts of the Heathrow incident but also showcases the strategic investments made in fleet modernization and technological enhancements aimed at improving operational efficiency and elevating customer experiences. As the airline continues its recovery and growth trajectory, the leadership has expressed confidence in sustaining earnings growth and margin progression throughout the full year. Furthermore, a commitment was made to return value to shareholders through dividends and a share buyback program, highlighting the group's robust financial strategies moving forward. The successful navigation of recent challenges, alongside a determined approach to enhance service offerings and operational capacities, positions British Airways favorably in the competitive airline industry. The results demonstrate the airline's adaptability to changing market conditions and its commitment to delivering strong performance even amidst disruptions.