International Airlines Group posted a dramatic profit increase in the first quarter of this year, but in its earnings report released today (May 10) it noted that the recovery in business travel continues to lag leisure travel. .
The parent company of British Airways, Iberia, Aer Lingus, Level and Vueling posted an operating profit of €68 million in the three months to March 31, up from €9 million in the same period in 2023, with sales This was an increase of 9.2% compared to the previous year. The year-on-year comparison amounted to 6.4 billion euros.
Passenger revenue for the quarter rose by €591 million (11.7%) year-on-year to €5.6 billion, primarily due to leisure demand and the early timing of the Easter holidays this year.
IAG said demand for leisure travel “remains strong” across its airlines, but the recovery for business passengers has been “more gradual”. The group also cited the impact of geopolitical tensions and conflicts on business travel as a key risk for the quarter.
The Group's capacity increased by 7% year-on-year and load factor increased by 1.6 percentage points to 83.1%. Revenue per available seat kilometer (ASK) also increased by 4.4%.
IAG Chief Executive Luis Gallego said: “Our transformation efforts and increased demand, including during the Easter holidays, resulted in another very positive result, with both revenue and operating profit improving.” Stated.
“Our investment in transformation across the group has significantly improved our airline's punctuality and customer experience,” he said in a statement.
Capacity growth across Europe was 9% higher than in 2023, with increases mainly for Aer Lingus, British Airways and Iberia. In particular, with the addition of six Airbus A350 aircraft, transportation capacity increased by an astonishing 15.4 times compared to the previous year. -900 aircraft flying to North and South America compared to the first quarter of 2023.
In the North Atlantic region, capacity increased by 0.6% and unit revenue increased by 6.5%, with IAG saying there was “strong demand” in both the business and leisure sectors.
The group said its core markets of Europe and the United States had performed well, but the rest of the world was “currently experiencing a more challenging situation”. Capacity to the Africa, Middle East and South Asia region increased by 0.4% in the quarter, while unit revenue decreased by 3.4%, primarily due to the Middle East conflict.
Capacity to Asia Pacific increased by 43.4%, but this accounted for only 3.7% of the Group's total capacity, reflecting the gradual recovery of British Airways' long-haul network. I am.
Gallego said IAG is “well positioned going into the summer” and expects long-term travel demand to remain strong.
The group also said it was making “progress” on its planned takeover of Spanish airline Air Europa after presenting a package of bailouts to the European Commission and expected the process to close later this year. Stated.
