Airline owner IAG returned to profit in the first quarter, and it retained its expectations for the rest of the year and said it had ordered 53 new planes.
The firm — owner of British Airways, Vueling, Iberia and Aer Lingus — made €176mn ($198mn) in profit in the quarter, a sharp increase from a €4mn loss during the same period in 2024.
IAG carried almost 26.2mn passengers in the three months, which was 1.8pc higher on the year. The north Atlantic and European markets were the main drivers for air travel demand and had the largest share of IAG's capacity — measured in available seat kilometres (ASK) — at 27.8pc and 23.3pc respectively.
IAG is investing in expanding capacity across Latin America and the Caribbean, which increased by 7.1pc on the year to 22.5pc of its global ASK. This was mainly covered by flights operated by Iberia.
IAG said lower fuel prices "offset expected cost increases", echoing statements made last week from European flag carriers Air France-KLM and Lufthansa Group.
IAG's fuel costs and emissions charges totalled €1.72bn in the first three months of 2025, down by 4.1pc on the year. It expects fuel costs at €7.5bn across the whole year. Non-fuel costs rose by 8.8pc on the year to €6.48/ASK, partially due to London Heathrow Airport's closure on 21 March.
IAG has not changed its outlook for 2025. It said its flights are 80pc booked for the current quarter and 29pc for the second half, as of 6 May. It predicts ASKs to increase by around 3pc this year.
Some airlines are forecasting weaker demand to and from the US, but IAG said profits from its premium flight packages are "mitigating some recent softness in US point-of-sale economy leisure."
New aircraft orders
IAG also said it has ordered 53 new aircraft for long-haul flights for delivery between 2028-33.
This order comprises 21 Airbus A330-900neo for Aer Lingus, Iberia and LEVEL, and 32 Boeing 787-10 for British Airways.
US President Donald Trump said this week the UK had committed to buying $10bn of US-produced Boeing planes.
IAG received five new aircraft in the first quarter, and exercised options for six Airbus for Ibiera and 12 Airbus and Boeing for British Airways. These will be delivered between 2027 and 2030.
