The owner of British Airways, International Airlines Group (IAG), has reported a significant increase in profits for the first quarter of the year. The company, which also owns Aer Lingus, Iberia, and Vueling, saw its operating profit soar to €68m (£58.5m), surpassing expectations and marking a substantial rise from €9m (£7.7m) during the same period in 2023.
This surge in earnings was attributed to strong demand for trips, especially over the Easter holidays, as well as a decrease in fuel costs by almost 5% compared to the previous year. IAG credited the lower fuel prices and more efficient aircraft deliveries for the cost reduction.
British Airways and other airlines under IAG reported a noticeable increase in ticket sales for flights between major European cities, particularly for leisure trips. Chief executive Luis Gallego revealed that the group’s airlines had already secured more than 80% of projected bookings for the second quarter and over 40% for the third quarter.
Despite the challenging landscape in the aviation industry, IAG’s performance stood out in contrast to its European competitors like Lufthansa and Air France-KLM, which reported lower-than-expected results for the first quarter.
Gallego expressed optimism about the future, stating that the group is well-positioned for the summer season due to the high demand for travel. He also noted that the impact of the Israel-Hamas conflict on the company had been limited.
The impressive financial results come at a time when British Airways faced criticism for its customer satisfaction levels, ranking as one of the worst airlines in a recent survey. However, the company remains committed to improving its services and ensuring customer satisfaction despite any challenges faced.