The International Airlines Group (IAG), which encompasses Iberia, British Airways, Vueling, Aer Lingus, and Level, reported revenues of 7.044 billion euros for the past three months, marking a 9.6% increase from the previous year. This growth underscores strong demand across its brands and service networks.
The group has placed an order for 53 new Airbus and Boeing aircraft, set for delivery between 2028 and 2033. This order aims to expand and modernize its long-haul fleet with more fuel-efficient models.
In addition to these orders, IAG secured 18 options in the same quarter—12 Airbus planes for Iberia and British Airways, and six Boeing aircraft for the latter. The group also received five new aircraft in the first quarter.
From January to March, IAG carried 26.18 million passengers, a 0.7% decline compared to the previous year. Its load factor dropped by 0.4 percentage points to 82.7%. However, available seat kilometers (ASK), a standard industry metric, rose by 3.2%.
Passenger revenue reached 6 billion euros. Operating profit before exceptional items increased by 130 million euros to 198 million euros, driven by revenue growth and lower fuel costs offsetting other rising expenses.
Passenger revenues increased by 6.5% to 6 billion euros, despite the timing impact of Easter, which was in March last year and in April this year. Cargo activity revenues climbed 12.4% to 318 million euros.
Operating expenses grew by 7.6% to 6.846 billion euros, with personnel costs rising 12% while fuel and emissions charges fell by 4.1%.
Group CEO Luis Gallego stated in a presentation to the Spanish securities supervisor that travel demand remains high across all markets, particularly in the ‘premium’ segment, despite macroeconomic uncertainties. The holding continues to focus on strengthening its broad brand portfolio in key markets across the North Atlantic, Latin America, and Europe, he added.
At the end of the quarter, IAG’s financial debt stood at 15.486 billion euros, down by 1.859 billion euros from the end of 2024.
Iberia recorded an operating profit of 137 million euros. The airline saw revenues of 1.829 billion euros, a 15.3% increase over the previous year, with passenger sales reaching 1.294 billion euros, up 7.7%, and an operating profit before exceptional items at 137 million euros, a rise of 67 million from January-March 2024.
Barcelona-based Vueling reported an operating loss of 55 million euros, compared to 85 million euros the previous year, although revenues rose by 4.1% to 567 million euros.
British Airways achieved an operating profit of 96 million euros, up from 10 million euros the prior year, while Aer Lingus posted a loss of 55 million euros.
Despite geopolitical and economic uncertainties, IAG maintains its outlook for the year, projecting a 3% capacity increase. Activity remains robust in Latin America and Europe, and demand across the North Atlantic stays strong, with better performance in the ‘premium’ segment helping offset “some recent weakness” in U.S. leisure sales in economy class.
As of May 6, the group had approximately 80% of its second-quarter bookings secured, boasting higher revenues than the previous year, and 29% of bookings for the second half of the year, aligning with last year’s figures.
IAG intends to invest around 3.7 billion euros in fixed assets this year.
