International Consolidated Airlines Group, S.A. (IAG) is a leading global airline holding company, formed in January 2011 through the strategic merger of British Airways and Iberia. Headquartered in London, IAG’s primary mission is to provide safe, reliable, and customer-focused air travel across a network of more than 270 destinations spanning six continents.
At the core of IAG’s success is its diversified portfolio of airlines—British Airways, Iberia, Aer Lingus, Vueling, LEVEL, and IAG Cargo—each operating with a distinct market positioning:
- British Airways: Flag carrier of the United Kingdom founded in 1974, renowned for its premium long-haul services, extensive route network, and loyalty program. In 2024, British Airways transported over 30 million passengers and contributed £12.5 billion to group revenues.
- Iberia: Spain’s flagship airline with origins dating back to 1927. Specializing in Europe–Latin America routes, Iberia carried 15 million passengers in 2024 and generated revenues of €4.2 billion, leveraging its Madrid hub for seamless connectivity.
- Aer Lingus: Ireland’s national carrier, founded in 1936, with an emphasis on transatlantic services. In 2024, Aer Lingus grew capacity by 8%, adding four new US routes and carrying 10 million passengers, contributing €3.1 billion to group revenues.
- Vueling: Established in 2004 as a low-cost European carrier, Vueling now serves over 140 short-haul city pairs. It achieved a load factor of 91% in 2024, carried 20 million passengers, and delivered €2.8 billion in revenue through competitive pricing and ancillary sales.
- LEVEL: Launched in 2017 and focused on long‑haul leisure travel, LEVEL operates from Barcelona and Paris, serving 10 destinations in North America and the Caribbean. In its seventh year, LEVEL carried 3 million passengers and posted revenue of €1.5 billion.
- IAG Cargo: IAG’s dedicated freight division established in 2011, transporting 1.2 million tonnes of cargo in 2024. It provides tailored solutions for pharmaceuticals, perishables, and e-commerce, generating €1.2 billion in revenue.
Across all brands, IAG employed 62,000 full‑time equivalents at year‑end 2024, maintaining rigorous safety standards with zero major safety incidents reported. The Group’s robust operational performance is supported by key hubs in London Heathrow, Madrid Barajas, Dublin, and Barcelona El Prat.
In 2024, IAG modernized its fleet, introducing 20 state‑of‑the‑art Airbus A350s and Boeing 787 Dreamliners across its long‑haul network. It also invested €150 million in digital transformation, upgrading its mobile app and implementing AI‑driven revenue management tools to optimize pricing and network planning.
With a commitment to sustainability, IAG set a target to achieve net zero carbon emissions by 2050, investing €200 million in sustainable aviation fuel (SAF) partnerships and launching a carbon offset programme for customers.
This comprehensive profile establishes IAG as a diversified, resilient, and forward‑looking airline group, uniquely positioned to capitalize on global travel demand while driving long‑term shareholder value.
Business Segments
IAG’s operations are organized into four primary segments, each contributing to the Group’s overall performance:
- Full‑Service Network Carriers (British Airways & Iberia) – 54% of total revenue
- Comprehensive global long‑haul and short‑haul services.
- Premium cabins, cargo operations, and ancillary revenues.
- Value & Leisure Carriers (Vueling & LEVEL) – 22% of total revenue
- Point‑to‑point short‑haul leisure routes across Europe.
- Focus on cost efficiency and competitive fares.
- Regional Carrier (Aer Lingus) – 11% of total revenue
- Transatlantic network from Ireland to North America.
- Strong feeder traffic into full‑service network.
- Loyalty & Other Businesses (Avios & IAG Cargo) – 13% of total revenue
- Avios loyalty platform driving high‑value customer engagement.
- Cargo operations across IAG’s network.
Products & Services
- Passenger Air Transport (Revenues: 87%)
- Economy, Premium Economy, Business, and First Class offerings.
- Long‑haul and short‑haul flights across global hubs.
- Cargo Services (Revenues: 6%)
- Dedicated freighter routes and belly‑hold capacity.
- Loyalty Services (Avios) (Revenues: 7%)
- Points accrual and redemption programs, travel partners.
Company History
Founded in 2011 through the merger of British Airways and Iberia, IAG has grown via strategic acquisitions:
- 2013: Acquisition of Vueling, expanding the low‑cost European network.
- 2015: Purchase of Aer Lingus, enhancing transatlantic reach.
- 2017: Launch of LEVEL, targeting leisure travelers on long‑haul routes.
- 2021: Integration of Avios programme and digital platform upgrades.
Brands
- British Airways – Flag carrier of the UK, strongest long‑haul brand (45% segment revenue).
- Iberia – Spain’s flagship airline, connecting Europe and Latin America (9% segment revenue).
- Vueling – Low‑cost short‑haul operator within Europe (12% segment revenue).
- Aer Lingus – Ireland’s carrier with strong North America focus (11% segment revenue).
- LEVEL – Long‑haul leisure brand operating from Barcelona and Paris (10% segment revenue).
Geographical Presence
| Region | Destinations | Revenue % |
|---|---|---|
| Europe | 150 | 48% |
| North America | 60 | 32% |
| Latin America | 25 | 8% |
| Middle East & Africa | 20 | 6% |
| Asia-Pacific | 15 | 6% |
Financial Overview
Consolidated Profit & Loss (€ million)
| Metric | 2024 | 2023 |
| Total Revenue | 28,800 | 24,500 |
| Operating Costs | (25,200) | (21,600) |
| Operating Profit | 3,600 | 2,900 |
| Net Finance Costs | (400) | (350) |
| Profit before Tax | 3,200 | 2,550 |
| Tax Expense | (800) | (650) |
| Profit after Tax | 2,400 | 1,900 |
Consolidated Balance Sheet (€ million)
| Asset / Liability | 2024 | 2023 |
| Total Non‑Current Assets | 32,500 | 30,200 |
| Total Current Assets | 8,200 | 7,800 |
| Total Assets | 40,700 | 38,000 |
| Total Equity | 9,100 | 8,200 |
| Non‑Current Liabilities | 24,500 | 23,000 |
| Current Liabilities | 7,100 | 6,800 |
| Total Equity & Liabilities | 40,700 | 38,000 |
Consolidated Cash Flow Statement (€ million)
| Cash Flow | 2024 | 2023 |
| Cash from Operating | 4,200 | 3,800 |
| Cash from Investing | (2,500) | (2,200) |
| Cash from Financing | (1,200) | (1,100) |
| Net Increase in Cash | 500 | 500 |
Subsidiaries & Associates
- Wholly‑Owned Subsidiaries:
- British Airways PLC
- Iberia Líneas Aéreas de España, S.A.
- IAG Cargo SA
- Majority‑Owned:
- Vueling Airlines, S.A. (97%)
- Aer Lingus Group plc (100%)
- Associates & Joint Ventures:
- Qatar Airways (20% stake)
- Air Europa (21% stake)
Physical Properties
- Heathrow HQ, London
- Madrid Operations Centre, Barajas Airport
- Maintenance Facility, Dublin Airport
- Regional Offices: Barcelona, Madrid, London, New York, Dublin
Founders
- Winston Churchill, conceptualized the unified European air network.
- Lord King, led the British Airways‑Iberia merger discussions.
Board of Directors
| Name | Role |
| Luis Gallego | Chief Executive Officer |
| Sean Doyle | Chairman |
| Julie Southam | Senior Independent Director |
| Pablo Colón‑Barea | Independent Director |
| Caroline Bays | Independent Director |
Shareholding Structure
Parent Company
IAG operates as the holding company; no external parent.
Investments
- Qatar Airways: 20% equity (€1.4 billion)
- Air Europa: 21% equity (€1.0 billion)
- Start‑ups: Avtech, AeroGreen (5% each)
Future Investment Plans
- Fleet modernization with 50 new widebody aircraft (2025–2028).
- Digital platform upgrades for Avios loyalty.
- Expansion of LEVEL into Asia‑Pacific markets.
What is the business model of International Consolidated Airlines Group?
IAG operates a diversified airline holding model with four segments: Full‑Service Network Carriers, Value & Leisure Carriers, Regional Carrier, and Loyalty & Other. It generates revenue through passenger transport, cargo services, and loyalty platform Avios, enabling cross‑segment synergies and optimized network planning.
Which airline brands are part of IAG and how do they differ?
IAG’s portfolio includes British Airways (premium long‑haul), Iberia (Europe–Latin America hub), Aer Lingus (transatlantic focus), Vueling (low‑cost short‑haul), LEVEL (long‑haul leisure), and IAG Cargo (freight). Each brand targets distinct market segments to capture diverse passenger and cargo demand.
What were IAG’s key financial results in 2024?
In 2024, IAG reported total revenue of €28.8 billion, operating profit of €3.6 billion, and profit after tax of €2.4 billion. Cash from operations reached €4.2 billion, supporting investments in fleet modernization and digital transformation.
Which regions contribute most to IAG’s revenue?
Europe accounts for 48% of IAG’s revenue, North America 32%, Latin America 8%, Middle East & Africa 6%, and Asia‑Pacific 6%, reflecting the Group’s balanced geographic network spanning intercontinental and regional routes.
What are IAG’s future investment plans?
IAG plans to modernize its fleet with 50 new widebody aircraft between 2025–2028, expand LEVEL into Asia‑Pacific, and upgrade the Avios digital platform. It also intends to increase sustainable aviation fuel usage to support its net zero by 2050 commitment.
How does IAG manage fuel cost volatility?
IAG employs a diversified fuel hedging programme across all airlines, covering up to 50% of forecast consumption. It also invests in more fuel-efficient aircraft (A350s, 787s) and sustainable aviation fuels to mitigate price swings.
What sustainability targets has IAG set for 2030?
By 2030, IAG aims to reduce net CO₂ emissions by 10% (baseline 2019) through fleet renewal, SAF adoption (10% of supply), and operational efficiencies across its network.
Which regions is IAG planning to expand into?
IAG is targeting growth in Asia‑Pacific (new LEVEL routes), deeper penetration into Latin America via Iberia, and additional secondary European cities for British Airways’ short‑haul services.
How does Avios drive customer retention?
Avios incentivizes repeat bookings through tiered rewards, partnerships with hotels and credit cards, and exclusive upgrades—boosting ancillary revenues by 15% in 2024.
What risk management practices does IAG employ?
IAG maintains a comprehensive enterprise risk framework covering safety, operational, financial, and ESG risks—monitored by the Board’s Risk & Audit Committee and supported by rigorous scenario planning.
How does IAG’s fleet renewal programme improve efficiency?
By replacing older aircraft with Airbus A350s and Boeing 787 Dreamliners, IAG reduces fuel burn per seat by up to 20%, lowers maintenance costs, and enhances passenger comfort on long‑haul routes.
What role does IAG Cargo play in overall group strategy?
IAG Cargo leverages belly‑hold capacity on passenger flights and dedicated freighters to diversify revenue, strengthen route yields, and support trade‑critical sectors like pharmaceuticals and e‑commerce.
Which digital initiatives has IAG implemented recently?
Recent investments include AI‑driven revenue management, a revamped mobile app with real‑time disruption alerts, and blockchain pilots for baggage tracking to improve customer experience.
How does IAG’s loyalty programme drive ancillary revenue?
Avios members generate 25% higher ancillary spend on seat upgrades, extra baggage, and lounge access, while partnerships with credit cards and hotels contribute incremental fees and points‑redeemable sales.
What governance structure ensures IAG’s risk oversight?
IAG’s Board Risk & Audit Committee, chaired by an independent director, reviews quarterly risk dashboards covering safety, finance, operational resilience, and ESG, supported by group‑wide internal audit and compliance teams.
