IAG maintains 2025 outlook amid ‘geopolitical and macroeconomic uncertainty’

British Airways owner International Airlines Group (IAG) is maintaining its outlook for the year despite geopolitical and macroeconomic uncertainty.

 

North Atlantic demand has been “robust” in current trading, with strength in premium cabins “mitigating some recent softness in US point-of-sale economy leisure”.

 

Latin America and Europe continue to be strong, according to the group which also includes Aer Lingus, Iberia, Vueling and Level.

 

IAG revealed orders for an additional 53 aircraft for its medium-term long-haul fleet requirements comprising 21 Airbus A330-900neos and 32 Boeing 787-10 Dreamliners for delivery from 2028 to 2033. 

 

"The aircraft are mainly for replacement, with around one third for growth in IAG’s core markets," the company said.

 

IAG chief executive Luis Gallego said: "This order marks another milestone in our strategy and transformation programme and underlines our commitment to strengthening our airline brands and enhancing our customer proposition. 

 

“Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience, while continuing to drive long-term value for our shareholders."

 

IAG airlines were around 80% booked at May 6 for the second quarter with revenue ahead of last year, and 29% booked for the second half, described as being broadly in line with 2024.

 

The group said: “Whilst being mindful of the geopolitical and macroeconomic uncertainty, our outlook for the full year is unchanged

 

“We are continuing to see good demand for air travel across our core markets and for our brands, highlighting the strength of our portfolio.”

 

However, the company continues to review plans for the winter season and 2026 following a 3% increase in capacity.

 

The projections came as IAG swung into the black in the first quarter with a pre-tax profit of €239 million against a loss of €87 million in the same period last year. First quarter revenue grew by 9.6% to more than €7 billion.

 

The North Atlantic region continues to be a major area of strength, with transatlantic capacity increased slightly by 0.2% in the quarter and passenger unit revenue up by 13%. 

 

BA is focusing on strengthening its network by adding frequency to Austin and Washington while “managing for greater operational resilience” by working with partner American Airlines to serve Dallas. 

 

Both Aer Lingus and Iberia are now deploying new single aisle A321 XLRs to Minneapolis and Boston respectively, with Indianapolis, Nashville and Washington to come.

 

Gallego said: “Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation.

 

“We continue to deliver on our industry-leading financial targets.

 

“We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America and intra-Europe.

 

“We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty.

 

“Our commitment to financial strength and shareholder value is reflected in €530 million of share buybacks completed in 2025 so far, alongside a proposed final dividend of €288 million, which brings our total dividend for 2024 to €435 million.”