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International Consolidated Airlines Group SA on Friday said demand on its key North Atlantic routes remains ‘robust’ as it reported higher sales in the first quarter. The London-based owner of British Airways and Iberia Airlines swung to a pretax profit of €239 million in the first quarter of 2025 from a loss of €87 million a year ago. Adjusted operating profit jumped to €198 million from €68 million, beating company compiled consensus of €158 million. Strong revenue growth and a lower fuel price offset expected cost increases, IAG said. Operating margin before exceptional items increased to 2.8% from 1.1%. Revenue climbed 9.6% on-year to €7.04 billion from €6.43 billion, beating consensus of €6.80 billion. ‘We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty,’ Chief Executive Officer Luis Gallego said. In response, shares in IAG rose 0.9% at 292.77 pence each in London on Friday morning. Available seat kilometres and passenger revenue per ASK rose 3.2%, while non-fuel costs per ASK increased 8.8%. IAG retained its full-year outlook despite ‘geopolitical and macroeconomic uncertainty’. The airline operator said it continues to see ‘good demand’ for air travel across core markets and brands. ‘Latin America and Europe continue to be strong and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure,’ it added. As of May 6, IAG said it is ‘around 80%’ booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half, broadly in line with last year. In addition, IAG announced it is ordering 53 new Airbus and Boeing aircraft for its long-haul fleet. It will buy 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft, ‘which can be deployed within Aer Lingus, Iberia or LEVEL’. The aircraft will be delivered between 2028 and 2033, IAG said. The order with Boeing grants British Airways the rights to elect to purchase up to 10 additional Boeing 787 aircraft and the order with Airbus grants IAG the rights to elect to purchase up to 13 additional Airbus A330-900neo aircraft. Gallego said the order ‘marks another milestone in our strategy and transformation programme and underlines our commitment to strengthening our airline brands and enhancing our customer proposition’. ‘Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience, while continuing to drive long-term value for our shareholders,’ he added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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