International Airlines Group has ordered 53 new Airbus and Boeing aircraft for its long-haul fleet after posting a first-quarter profit of €198 million on Friday.
The parent company of British Airways, Iberia, Aer Lingus, Level and Vueling said the result marked a €130 million increase on the same period last year. Overall revenue increased 9.6 percent year over year to €7 billion following “resilient” demand across all markets, particularly in its premium cabins, the company said.
Passenger revenue increased 6.5 percent year over year to €6 billion, driven by higher yields, strong leisure demand and capacity increases in the North Atlantic region.
Group capacity for the period, measured in available seat kilometers, along with passenger revenue per ASK each increased 3.2 percent. However, the average load factor was down 0.4 percentage points to 83.1 percent.
British Airways saw year-on-year profits increase by £86 million to reach £96 million, despite the March 21 closure of London Heathrow airport, which had an estimated adverse impact of £40 million, according to IAG.
Spanish carrier Iberia posted a profit of €137 million, while Aer Lingus and Vueling both reported losses of €55 million, which the company said was “typical” of first-quarter performance.
IAG CEO Luis Gallego said: “Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation. … We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty.”
While the company’s intra-European market continues to be “robust,” IAG said the North Atlantic region is “a major area of strength,” where capacity increased by 0.2 percent in the quarter and passenger unit revenue grew by 13 percent.
IAG’s newly announced aircraft order, which consists of 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo jets, will also grow the group’s long-haul fleet. The aircraft will be delivered between 2028 and 2033, with options to purchase up to 10 additional Boeing 787 aircraft and up to 13 additional Airbus A330-900neo aircraft.
The new order is in addition to six Airbus A350-900s for Iberia, as well as six Airbus A350-1000s and six Boeing 777-9s for British Airways, orders for which were placed in March, and first disclosed on Friday.
Looking ahead, IAG said its full-year outlook remains unchanged, with strong premium demand mitigating recent “softness” in leisure demand from the U.S. point of sale.
The company added that revenue for Q2 is already ahead of last year, with “around 80 percent” of seats booked, while 29 percent of seats have been booked for the year’s second half.
Originally published by BTN Europe.
