The International Airlines Group (IAG), parent company of British Airways, Iberia, Vueling, Aer Lingus, and Level, has had a strong start to the year, posting a profit before tax of €2025 million in the first quarter of 239. This represents a significant improvement over the same period last year, when it recorded a loss of €87 million.
In light of the results, CEO Luis Gallego expressed satisfaction with the continued strong demand for air travel across all markets, particularly in premium cabins, despite the ongoing global economic uncertainties. Alongside the presentation of the financial figures, IAG announced a significant investment in the future: the order for 53 new long-haul aircraft from Boeing and Airbus.
Earnings improvement thanks to strong demand and operational performance
In the first quarter, the IAG Group increased its revenue by almost ten percent year-on-year to just over seven billion euros. Operating profit nearly tripled to 198 million euros, compared to 68 million euros in the first quarter of the previous year.
This development is remarkable, as airlines traditionally tend to post losses in the winter quarter and generate their profits primarily during the more travel-intensive summer period. This positive development was welcomed by analysts and investors alike, reflected in a rise in IAG's share price. Demand on the key North Atlantic routes, in particular, proved robust and contributed significantly to the positive result.
Large order for fleet modernization and expansion
To prepare for the future and further enhance the customer experience, IAG is planning a comprehensive modernization and expansion of its long-haul fleet. Subject to shareholder approval at the Annual General Meeting in June, a total of 53 new wide-body jets are to be acquired. The order includes 32 Boeing 787-10 "Dreamliners" and 21 Airbus A330-900neos.
These aircraft are scheduled for delivery between 2028 and 2033 and will be operated by the Group's subsidiaries Aer Lingus, Iberia, and Level. IAG has also secured options to purchase a further ten Boeing and thirteen Airbus aircraft of the ordered type. According to the company, some of the new aircraft will replace older models, while others are earmarked for growth in core markets. The engines for the new aircraft will be supplied by Rolls-Royce for the Airbus models and by General Electric for the Boeing 787-10, with comprehensive warranty and maintenance packages included in the orders. This investment underscores IAG's long-term confidence in the recovery and growth of international air travel.