Profits Soar for British Airways Parent Company IAG Amid Strong Travel Demand
International Airlines Group (IAG), the parent company of British Airways, has reported a significant profit surge for the first quarter, driven by strong travel demand over the Easter holidays and a decrease in fuel costs.
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International Airlines Group (IAG), the parent company of British Airways, has reported a significant surge in profits for the first quarter of the year. The company’s operating profit reached €68 million (£58.5 million), a substantial increase from €9 million (£7.7 million) during the same period last year. This impressive growth is attributed to a rise in travel demand, particularly over the Easter holidays, and a decrease in fuel costs.
IAG, which also owns Aer Lingus, Iberia, and Vueling, has benefited from a nearly 5% drop in fuel costs due to lower prices and the introduction of more efficient aircraft. The group’s total revenues climbed to €6.4 billion (£5.5 billion), up from €5.9 billion (£5.1 billion) last year.
Despite facing customer satisfaction challenges, British Airways and its sister airlines saw a noticeable increase in ticket sales, especially for leisure trips between major European cities. IAG’s CEO Luis Gallego noted that the airlines have already secured over 80% of projected bookings for the second quarter and more than 40% for the third quarter, highlighting the ongoing strong demand for travel.
Chief executive Luis Gallego said, “Our transformation initiatives and increased demand, including over the Easter holidays, have delivered another very good set of results with improvements to both revenue and operating profit.
“Our Group benefits from the strength of our core markets – North Atlantic, South Atlantic and intra-Europe – and the performance of our brands. Investment across the Group in transformation is delivering encouraging improvements in punctuality and customer experience at our airlines. IAG Loyalty continues to perform very well.
“We are well-positioned for the summer. The high demand for travel is a continuing trend.”
The company’s positive results stand in contrast to European rivals Lufthansa and Air France-KLM, which reported lower-than-expected first-quarter outcomes.
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