British Airways’ parent company International Airlines Group (IAG) delivered a robust first-quarter performance, underpinned by surging demand for premium travel across its core markets.
The company reported a 9.6% increase in revenue and a €130 million rise in operating profit before exceptional items, reaching €198 million.Luis Gallego, IAG’s Chief Executive Officer, credited the Group’s strategic focus and brand strength for the strong result.
“Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation,” he said.
“We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty.”
This has proven critical in offsetting headwinds such as rising non-fuel costs and geopolitical concerns. IAG noted that strength in premium cabins had specifically helped mitigate recent softness in US economy leisure bookings, especially across the key North Atlantic route. Meanwhile, strong revenue growth and a lower fuel price offset expected cost increases.
The Group’s multi-brand portfolio, which includes British Airways, Iberia, and Vueling, continues to perform well. Operational highlights included improved punctuality, especially at Iberia and Vueling, and sustained customer interest in IAG’s long-haul products.
“We remain focused on strengthening our broad portfolio of market-leading brands across our core markets,” Gallego said.
IAG’s forward bookings reflect ongoing confidence, with approximately 80% of Q2 capacity already sold and revenue tracking ahead of last year. As a result, Gallego remains cautiously optimistic, maintaining its full-year outlook. “We continue to deliver on our industry-leading financial targets,” he said.
During the first quarter, the Group took delivery of five new aircraft and exercised options for 18 more widebody jets, including six Airbus A350-900s for Iberia, six Airbus A350-1000s for British Airways, and six Boeing 777-9s, also for British Airways. These aircraft, set for delivery between 2027 and 2030, are part of a broader strategy to reduce emissions and enhance onboard products.
Additionally, IAG announced a significant new order of 53 long-haul aircraft – 21 Airbus A330-900neo and 32 Boeing 787-10 jets – for delivery between 2028 and 2033. Primarily aimed at fleet replacement, about one-third of these new aircraft will support growth in IAG’s core markets.
