Turkish Airlines Emerges as Europe’s Most Profitable Airline in 2025

Europe’s aviation industry has shown remarkable resilience in the mid-2020s, rebounding from the pandemic with strong financial performances. As airlines compete for market share and profitability, a closer examination reveals that Turkish Airlines stands out as Europe’s most profitable airline in 2025, particularly when excluding low-cost carriers and considering the performance of individual airlines within larger groups.

The landscape of European aviation is shaped by three key players: the ultra-low-cost carrier Ryanair, the legacy powerhouse International Airlines Group (IAG), and the ambitious Turkish Airlines. Each operates under different business models that significantly influence their profitability.

Ryanair: The Low-Cost Leader

Ryanair, the Irish ultra-low-cost airline, has consistently ranked among the most profitable airlines in Europe. In the fiscal year 2024, Ryanair reported a profit after taxation of €1.92 billion on revenues of €13.44 billion, achieving a load factor of approximately 94%. This success can be attributed to its efficient business model, which emphasizes high utilization, minimal frills, and rigorous cost control.

Data from Gridpoint Consulting highlights Ryanair’s commanding pre-tax profit margins within the European airline sector, benefiting from a strong balance sheet characterized by minimal debt and substantial cash reserves. With 183.7 million passengers carried and an average fare increase of around 21% compared to the previous year, Ryanair’s strategy is set to continue delivering robust results throughout 2025 and likely into 2026 as well.

IAG: The Legacy Powerhouse

International Airlines Group (IAG), which encompasses airlines such as British Airways, Iberia, and Vueling, has also posted impressive results, achieving pre-tax profits of €3.8 billion in 2024. Its operating margin stood at 13.8%, with a return on capital of 17.3%, which is notable for the airline industry.

When evaluating the profitability of IAG’s constituent airlines, British Airways reported a margin of 14.2%, and Iberia followed closely with 13.6%. However, when assessing individual airlines rather than conglomerate performance, IAG does not provide a single airline that dominates in profitability compared to others such as Turkish Airlines.

Turkish Airlines: The Unexpected Champion

Turkish Airlines, the flag carrier of Türkiye, reported a net profit of approximately €2.06 billion (or US$2.4 billion) in 2024, consolidating its position as Europe’s most profitable airline when low-cost carriers are excluded and IAG’s airlines are assessed separately. The airline generated revenues of US$22.7 billion, reflecting an increase of over 8% year-on-year, with cargo revenue rising by around 35% and passenger revenue increasing by about 4%.

The airline’s Earnings Before Interest, Tax, Depreciation, Amortisation, and Rent (EBITDAR) reached US$5.7 billion, with a margin of 25.3%. Turkish Airlines’ profitability was further bolstered by approximately US$1.7 billion from investment activities. Additionally, Turkish Cargo’s significant growth, positioning it as the world’s third-largest air cargo carrier, played a crucial role in this success.

Turkish Airlines boasts a vast network, serving all continents from its hub in Istanbul, and holds the Guinness World Record for the most destinations served globally. This extensive reach and the strength of its cargo operations enhance its competitive edge over both low-cost and legacy carriers.

Understanding Business Models: Low-Cost vs. Legacy vs. Network

The distinction between low-cost airlines, legacy groups, and individual full-service airlines is critical for understanding profitability. Ryanair thrives on a low-cost model that maximizes aircraft utilization and minimizes operational expenses. In contrast, IAG’s legacy group combines multiple airlines with varying business models, significantly impacting its cost structure.

Turkish Airlines’ full-service network operations, combined with strong cargo capabilities, allow it to outperform its peers in terms of profitability. Each airline’s success stems from distinct advantages and market strategies, illustrating the diverse landscape of European aviation.

Implications for Stakeholders in Aviation

For aviation strategists, investors, and enthusiasts, the insights drawn from this analysis underscore the importance of understanding which airline models are thriving in profitability. Ryanair remains the benchmark for low-cost airlines, showcasing resilience through strong revenue growth and high load factors. IAG stands out among legacy groups, proving that established brands can return to profitability.

Turkish Airlines emerges as the leading full-service airline in Europe, excelling in network scale, cargo growth, and balance-sheet improvement. This profile suggests that successful airlines are those that diversify their revenue streams, effectively manage costs, and maintain a robust hub network.

Looking ahead, the focus will be on the key performance indicators that will shape the future of these airlines. For Ryanair, challenges include fare erosion and rising operational costs. IAG’s success will depend on recovering premium traffic and optimizing its operational efficiency. Turkish Airlines must sustain its cargo growth while navigating geopolitical risks and managing its debt.

The broader context reveals pressures on profit margins across the airline industry. According to Gridpoint Consulting, global airline profits reached a record US$36.6 billion in 2024; however, the net margin remained around 3.5%, indicating that even the most successful airlines must remain vigilant in a competitive market.

As the European aviation sector continues to evolve, the ability to adapt to challenges such as air traffic control disruptions, airport capacity constraints, and sustainability initiatives will be crucial for maintaining profitability. If Turkish Airlines, Ryanair, and IAG can successfully navigate these obstacles, they are likely to remain at the forefront of the industry.