London Daily

Focus on the big picture.
Friday, Jan 24, 2025

British Airways' owner IAG raises profit guidance as it sees capacity at 97% of pre-pandemic level

British Airways' owner IAG raises profit guidance as it sees capacity at 97% of pre-pandemic level

The company says demand for international travel is high despite the squeeze on family budgets while falling fuel prices are also helping improve its profits outlook.
The parent company of British Airways has raised its forecast for annual operating profits due to stronger bookings, saying it expects capacity to be at 97% of the 2019 pre-pandemic year.

International Airlines Group (IAG), which also counts Iberia and Aer Lingus among its stable of brands, said its focus on restoring earnings on key transatlantic routes was paying off.

The company said leisure travel was the driving factor while lower fuel prices were boosting its bottom line.

It reported that Latin America and North America traffic had already exceeded the levels seen before the COVID public health emergency kicked in to devastate international travel.

Revenue over the first three months of the year, its first quarter, came in at a better than expected €5.9bn (£5.2bn) compared to the €3.4bn (£3bn) achieved in the same period last year as flying abroad was getting back in gear.

It reported a small first quarter operating profit before exceptional items of €9m (£7.9m). Financial analysts had expected to see losses, as are typical for the three-month period, of almost €180m (£157.4m).

The group said that it now expected annual profit to come in above the top end of a €1.8bn (£1.6bn) to €2.3bn (£2bn) range given in February.

At the top level, such a performance would represent an improvement of 90% on 2022.

It called the outlook for the summer "encouraging".

The update chimes with reports from rivals that demand for holidays abroad is high despite the impact of the cost of living crisis on family budgets.

Shares rose by 4% at the open.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said of the figures: "British Airways owner, IAG, has landed a first quarter underlying operating profit for the first time since 2019.

"While all pandemic headwinds aren't fully in the rear-view mirror, namely that business travel, which IAG is highly exposed to, remains sluggish, the group's in much better shape overall."

She added: "Being more long-haul focused, it has taken a very long time for normality to come into view for IAG, but all things considered, back-to-normal is now officially on the menu.

"The main fly in the ointment is continued workforce disputes at major hubs, including Heathrow, which could dent demand and brand appeal if queues and disruption are worse than expected going into the important summer season."
Newsletter

Related Articles

0:00
0:00
Close
President Trump Orders Declassification of JFK, RFK, and MLK Assassination Records
President Trump Signs Executive Order to Bolster U.S. AI Leadership
Germany’s Democracy Under Strain: Political Labeling Sparks Free Speech Concerns
The Trump Era 2: A Time of Dramatic and Profound Change
BlackRock CEO Larry Fink Suggests Bitcoin Could Reach $700,000 with Increased Institutional Investment
Leaked Documents Reveal Google's Collaboration with Israeli Defense Forces During Gaza Conflict
Trump to Announce $500 Billion AI Infrastructure Investment
Dear President Donald Trump, I want to assure you that this fraud does NOT reflect the opinions of the majority of decent British citizens.
Olaf Scholz vs. Elon Musk: A Battle Over Common Sense, Which Scholz Appears to Be Missing
EU’s Overregulation Drives Innovation Collapse and Brain Drain
Five Billionaires on Track to Break One Trillion Dollar Wealth Barrier
TikTok Restored in the U.S. Following Trump inauguration
Bill Ackman Praises Social Media Platform X as 'The New Media'
Argentina Achieves Record Trade Surplus in 2024 Under President Milei
Italian Prime Minister Giorgia Meloni Proposes Rome as European Union Capital
France Urges EU to Act on Musk's Political Influence as Tensions Rise
Former Special Forces Blast Defense Ministry for Revealing Sensitive Details
Celebrity Responses to California Wildfires: Charity, Criticism, and Controversy
The Wildfires of Los Angeles: A Devastating Impact on Celebrities and California's Leadership
Tragic Loss: Teenager's Death Sparks Community Reflection in Bedford and London
UK Government Proposes Cap on Resale Ticket Prices to Combat Touts
Greenland's Future Caught in Diplomatic Crossfire Between Trump and Europe
EU Prepared to Lead Support for Ukraine Amid US Uncertainty, Says Estonian Prime Minister
Brompton E-Bike Component Diverted to UK Military Drone Production, Causes Delays
Romanian Gang Convicted of Human Trafficking and Exploitation in Dundee
Persistent Cold Snap Grips the UK: Severe Frost and Snow Disrupt Daily Life
Germany Faces Alarming Rise in Homelessness, New Report Shows
China’s Appetite for Salmon: A Game Changer in Global Seafood Markets
Russian Bots Allegedly Amplified NATO Critic Prior to Croatian Election, Researchers Reveal
Armenia Considers EU Membership Referendum Amid Strained Ties with Russia
French Finance Minister Explores Pension Reform Compromise to Secure Budget Agreement
Armenia Considers EU Referendum Amid Growing Rift with Russia
New Wildfire Ignites in Los Angeles as Region Battles Devastating Blazes
The Espionage Unraveled: A Russian Spy Network's Intricacies in the UK
U.S. Supreme Court Rejects Trump's Bid to Delay Sentencing in Hush Money Case
UK Financial Markets Remain Calm Amid Rising Government Borrowing Costs
Stellantis Achieves UK Electric Vehicle Sales Mandate Amid Factory Closure
TikTok Faces Potential Ban in the United States Amid Security Concerns
Pound Plummets to 14-Month Low Amid Concerns Over UK Borrowing Costs
Tensions Rise Over Planned Pro-Palestinian March in London
Bomb Scare in Central London: Abandoned Car Sparks Panic Near Regent Street
Police Seek Suspect in Antisemitic Incident at Liverpool Street Station
Regulatory Reprimand for London Charity Over Fundraising for Israeli Soldier
The Duchess of Sussex Mourns Devastating Loss of Beloved Rescue Dog
From Chairman to Controversial Politician: Rupert Lowe's Journeys in Business and Politics
Metropolitan Police Halts Pro-Palestine March Near BBC Due to Proximity to Synagogue
Inside Warwick Hospital: A Glimpse into the NHS's Battle Against Winter Pressures
Chappell Roan: A Synth-Pop Sensation Emerges as BBC Sound Of 2025 Winner
Search Intensifies for Missing Aberdeen Sisters Eliza and Henrietta Huszti
Pioneering Drug Consumption Room Opens in Glasgow
×