In the fourth of our winning stories from 2025’s Airline Strategy Awards, which were held on 14 July in London, IAG chief executive Luis Gallego was recognised in the Executive Leadership: Europe category
Judges viewed IAG’s performance under chief executive Luis Gallego as an impressive story in a competitive region.
Since becoming leader in 2020, Gallego has led a transformative cultural shift across IAG, emphasising efficiency, innovation, collaboration and sustainability.
Notably, the group has been outperforming peers Air France-KLM and Lufthansa Group in financial terms.
In 2024, for example, IAG delivered a record operating profit of €4.4 billion ($5.2 billion), at an industry-leading operating margin of 13.8%. Net profit rose to €2.7 billion, driven by disciplined cost management and strong demand recovery.
“They’ve done something that’s very hard to do… they are massively outperforming the other big airline groups in the region,” said one judge.
Crucially, all major subsidiaries, including British Airways, Iberia, Aer Lingus and Vueling, achieved profitability, with BA recording a 14.2% operating margin and Iberia reaching an unprecedented €1 billion profit.
“For the first time the group is humming because every part of it is doing well,” a judge states.
“They let the individual airlines operate how they want to culturally, and I am a big fan of that.”
Gallego’s investment in operational reliability significantly improved punctuality, notably at Iberia and British Airways, enhancing overall customer satisfaction and brand loyalty.
Strategically, meanwhile, Gallego expanded IAG’s global footprint by strengthening core hubs and partnerships, judges noted.
Strategic partnerships in particular, including deeper integration with Qatar Airways and expanded joint ventures with American Airlines and Japan Airlines, significantly enhanced IAG’s global reach without extensive capital outlay.
At the same time, fleet renewal and sustainability have been cornerstones of Gallego’s strategy. In 2024, IAG took delivery of 19 fuel-efficient Airbus A350-1000s and Boeing 787-10s, significantly reducing carbon emissions per passenger.
The group’s aggressive commitment to sustainability included a notable 1.9% sustainable aviation fuel (SAF) usage, setting it firmly on track toward its 10% target by 2030.
And Gallego’s customer-centric approach significantly elevated the passenger experience across all brands, judges noted. British Airways and Iberia introduced innovative premium cabin products, including the former’s Club Suite and the latter’s enhanced Business Plus seats with increased privacy and comfort.
Furthermore, judges were impressed by extensive investments in digital transformation in the group, including a major IT upgrade at British Airways and advanced digital tools across Iberia and Aer Lingus.
Gallego has also transformed IAG Loyalty into a significant profit driver, using the Avios brand.
Overall, Gallego’s pragmatic yet visionary leadership has firmly positioned IAG as a financially robust, operationally excellent, and strategically poised global airline leader.
“If we are measuring on strategic complexity, improving things and making a big difference, you’d have to go with IAG,” another judge says.
“What doesn’t look good in that group? It’s very impressive.”
The full list of 2025 Airline Strategy Awards winners, by category, were:
Executive Leadership: North America Scott Kirby, United Airlines
Executive Leadership: Europe Luis Gallego, IAG
Executive Leadership: Asia-Pacific Shinichi Inoue, ANA
Executive Leadership: Latin America & Caribbean Pedro Heilbron, Copa Airlines
Executive Leadership: Africa & Middle East Ghaith Al Ghaith, Flydubai
Air-Cargo Leadership Azul Cargo Express
Digital Leadership Ryanair
ESG Leadership JetBlue Airways
The Airline Business Award Harry Hohmeister