Aer Lingus Profits Surge €31M Amid IAG Shares Plunge 10%

UPDATE: In a stunning turn of events, Aer Lingus has reported a dramatic €31 million surge in profits for the third quarter of 2025, even as its parent company, International Airline Group (IAG), sees shares tumble by 10% in early trading today. This stark contrast underscores the airline’s robust performance amid broader market struggles.

Aer Lingus announced an impressive operating profit of €170 million for Q3 2025, reflecting a 22% increase compared to the same period last year. The airline attributes this growth to a solid revenue performance and favorable fuel pricing. Notably, Aer Lingus expanded its capacity by approximately 6%, operating its largest-ever North American network during this period.

In contrast, IAG’s pre-tax profits fell by 2.1% to €1.87 billion, down from €1.91 billion last year. While IAG reported a 2.4% increase in overall capacity, it faced a 2.4% decline in passenger revenue, revealing troubling signs in the North Atlantic market. IAG Chief Executive Luis Gallego described the results as “strong,” emphasizing the ongoing robust demand for air travel despite the challenges faced in the European market.

“We are comparing with a very strong quarter last year,” Gallego stated. “Europe continues to be weak but is improving lately. The rest of the world in general is positive.”

Analysts have pointed to reduced demand for cargo transport as a significant factor in IAG’s disappointing results. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, noted that the drop mirrors trends seen with competitors like Air France-KLM, attributing lower cargo revenues to last year’s surge in volumes influenced by political events in the U.S.

Despite the struggles faced by IAG, Aer Lingus continues to thrive, reflecting the airline’s resilience in a challenging market. The performance of Aer Lingus stands in stark contrast to the broader airline industry’s ongoing recovery efforts, particularly in the face of shifting demand dynamics.

As the situation develops, all eyes will be on IAG’s strategy to address these challenges and on Aer Lingus to see if it can maintain its upward trajectory in the coming months. With the travel industry still rebounding, the implications for both airlines and passengers are significant.

Stay tuned for updates as this story unfolds.