British Airways’ parent is rolling out Starlink high-speed Wi-Fi across its fleet – Starting with BA planes in March
International Airlines Group (IAG) is bringing Starlink’s high-speed satellite Wi-Fi to every aircraft in its fleet, with the first British Airways planes going live as soon as next month.
The rollout, announced alongside IAG’s blockbuster full-year 2025 results on Friday (267 February) is the latest move by the owner of British Airways, Iberia, Aer Lingus, Vueling, and LEVEL to turn strong operational performance into a noticeably better passenger experience.
“We reported another year of exceptional performance in 2025, delivering for our customers with continued improvements in on-time performance and customer satisfaction,” IAG CEO Luis Gallego said in the results statement. “This sector-leading operational performance is translating into world-class financial results.”
Record profits, fat margins, and big cash returns
IAG posted its best-ever set of numbers for 2025:
- Revenue: €33.213 billion, up 3.5%
- Operating profit (before exceptional items): €5.024 billion, up 13.1%
- Operating margin: 15.1%, up 1.3 percentage points — now at the top end of the group’s through-the-cycle target range
- Adjusted earnings per share: 69.5 euro cents, up 22.4%
- Free cash flow: €3.1 billion
- Return on invested capital: 18.5%
The group flew 2.4% more capacity while keeping unit costs under control. Passenger revenue per available seat kilometre was essentially flat at 8.24 euro cents, but non-fuel costs rose only modestly and fuel costs fell 6.9% year-over-year.
That cash machine is being put to work for shareholders. IAG is increasing the total dividend per share by 8.9% and returning another €1.5 billion of excess cash over the next 12 months, starting with a €500 million share buyback to be completed by the end of May. That brings the total excess capital returns announced in the past three years to €2.85 billion.
Net leverage sits at a rock-solid 0.8 times, and the group ended the year with €8.3 billion in cash and deposits.
IAG grew capacity 2.4% in 2025 and expects roughly 3% growth in 2026, focused on its core markets. The North Atlantic (49% market share with partners) and Latin America remain priorities, with new Airbus A321XLR aircraft already delivering profitable incremental flying for Aer Lingus and Iberia.
The group is also expanding its higher-margin, asset-light businesses. IAG Loyalty issued 200 billion Avios in 2025 (up 13.1%) and delivered a 20.5% increase in profit before a disputed VAT issue with HMRC.
Starlink is the headline customer upgrade
The Wi-Fi announcement is the most tangible sign yet that IAG’s transformation programme is reaching passengers directly.
In November, the group signed a deal to install Starlink across all five of its airlines — Aer Lingus, British Airways, Iberia, LEVEL, and Vueling.
Speeds will match home broadband, supporting streaming, downloads, online gaming, and video calls.
The first Starlink-equipped British Airways aircraft will enter service in March 2026, with the rest of the fleet to follow in the coming years.
The move comes as IAG’s two key customer metrics hit new highs:
- Customer Net Promoter Score rose 6.9 points to 29.5
- On-time performance jumped 4.6 points to 82.4% (Iberia Express remains Europe’s most punctual airline; Iberia is sixth in the world)
Gallego highlighted the investment in lounges, onboard food, digital products, and now connectivity as key drivers of the satisfaction gains.
More of the same in 2026
IAG is guiding for continued revenue and earnings growth at high margins, free cash flow above €3 billion after capex of around €3.6 billion, and further excess cash returns beyond the current €1.5 billion programme.
Non-fuel unit costs are expected to fall around 1% (helped by currency), and the group is 62% hedged on fuel for the year.
“We are confident as we look to the future, with compelling market dynamics, long-term secular growth and a clear plan to leverage our business model and deliver our strategy,” said Gallego.
For passengers, that strategy now includes the ability to scroll TikTok at 35,000 feet on Starlink speeds starting this spring, while shareholders enjoy another year of record profits and generous capital returns.
