London Daily

Focus on the big picture.
Tuesday, Sep 01, 2026

BA owner returns to profitability but blames Heathrow for 'operational challenges'

BA owner returns to profitability but blames Heathrow for 'operational challenges'

The group's airlines have been among many affected by months of cancellations, delays and missing luggage, and Heathrow is among many airports across Europe that have been hit.

British Airways owner IAG has returned to quarterly profitability for the first time since the coronavirus pandemic, but blamed Heathrow for its current "operational challenges".

IAG chief executive Luis Gallego said the group's best performing airlines were Iberia and Vueling, which were boosted by a recovery in the Spanish domestic market and routes to Latin America.

But he said that the industry is facing challenges as it returns to normal operations following two years of pandemic-related turbulence, singling out Heathrow Airport, where he said those challenges had been "acute".

"In the second quarter we returned to profit for the first time since the start of the pandemic following a strong recovery in demand across all our airlines. This result supports our outlook for a full year operating profit," he said.

"Our performance reflected a significant increase in capacity, load factor (how full planes are) and yield compared to the first quarter.

"Premium leisure remains strong while business travel continues a steady recovery in all airlines."

The group's airlines have been among many affected by months of cancellations, delays and missing luggage, and Heathrow is among many airports across Europe that have been hit.

Staff shortages in ground handling, airports and flight crew have presented major challenges as the aviation sector struggles to move into the peak season after two years of coronavirus pandemic-related turbulence.

But British Airways has been among the most energetic in cutting flights, having cut or lost thousands of staff during the pandemic.

MPs and consumer advocates have been among those who have criticised how the issue has been handled by both airlines and airports.

'Historic challenges'


Mr Gallego said: "Our industry continues to face historic challenges due to the unprecedented scaling up in operations, especially in the UK where the operational challenges of Heathrow airport have been acute.

"Our airline teams remain focused on enhancing operational resilience and improving customer experience.

"I would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment. We will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever."

IAG said its passenger capacity hit 78% of 2019 levels and it expects to reach around 80% in the third quarter and 85% in the fourth.

It posted an operating profit for the second quarter of €293m (£245m), compared with an operating loss of €967m (£810m) in 2021.

Newsletter

Related Articles

0:00
0:00
Close
Royal Mail Keeps First-Class Stamps at £1.80 and Second-Class at 91p
Church of England Prepares Formal Apology Over Historical Forced Adoptions
UK Competition Regulator Caps Veterinary Prescription Fees at £21
UK Aviation Authorities Roll Out Airspace Changes to Reduce Flight Delays
England Makes School Allergy Policies Mandatory Under Benedict’s Law
England and Wales Tighten Child Safeguarding Checks by Removing Supervision Exemption
Cornwall Geothermal Plant Begins Commercial Power and Lithium Operations
UK Inflation Holds Near 2.9% as Energy Costs Remain a Risk
UK Productivity Growth Averages 1.1% Over Two Years, Resolution Foundation Says
England Introduces Nationwide School Smartphone Ban and Uniform Limits
UK Gives Border Officers New Powers to Seize Migrants’ Mobile Phones
Green Party Wins First Westminster By-Election in Gorton and Denton
UK and EU Advance Gibraltar Border Deal Allowing Spanish Guards to Conduct Arrival Checks
Robert Jenrick Joins Reform UK After Losing Conservative Whip
Andy Burnham Faces First Prime Minister’s Questions After Labour Cabinet Overhaul
ScottishPower Recycles Nearly All Materials From Historic Hagshaw Hill Wind Farm
Millions Travel Across England, Wales and Northern Ireland for Summer Bank Holiday
Met Office Issues Yellow Thunderstorm Warnings Across Southern England
Four Arrested After Bank Holiday Stabbing Violence in Kettering
Scottish Chamber of Commerce Warns Tax and Business Costs Risk Holding Back Scotland
UK Government Launches Youth Employment Drive With Major Retailers
UK and Ukraine Advance AI and Defence Technology Partnership
Prime Minister Andy Burnham Moves to Exclude Serious Offenders From Early Release
Twelve Arrested After A66 Crash Kills Seven, Including Two Police Officers
Bank of England Governor Warns AI Investment Boom Could Trigger Global Market Correction
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
×