IAG Returns to Q1 Profit and Orders 53 New Long-Haul Aircraft

IAG

Strong transatlantic performance drives IAG profit rebound

IAG returns to Q1 profit with €176 million ($198 million) in earnings, a sharp turnaround from a €4 million loss a year earlier. The group, which owns British Airways, Iberia, Aer Lingus, and Vueling, cited strong North Atlantic and European market demand as key drivers of growth. Passenger volumes reached 26.2 million, up 1.8% year-over-year.

New aircraft orders reflect long-haul growth ambitions

To support its long-haul expansion, IAG confirmed an order for 53 new wide-body aircraft. This includes 21 Airbus A330-900neo jets for Iberia, Aer Lingus, and LEVEL, and 32 Boeing 787-10 aircraft for British Airways. Deliveries will take place between 2028 and 2033. IAG also exercised additional options for 18 aircraft set to arrive between 2027 and 2030, signaling confidence in future demand recovery.

Fuel savings offset rising costs; premium segment holds firm

IAG’s fuel and emissions costs fell 4.1% to €1.72 billion in Q1 2025, helping offset an 8.8% rise in non-fuel expenses. Capacity across Latin America and the Caribbean grew 7.1%, largely due to Iberia. Bookings remain solid, with Q2 flights already 80% booked. While some airlines expect softer U.S. leisure demand, IAG’s premium packages are helping maintain profitability.

The Metalnomist Commentary

IAG’s aircraft investment and profit rebound signal renewed confidence in long-haul travel demand, particularly for premium services. As fuel prices stabilize and fleet modernization accelerates, IAG is well-positioned to capitalize on the transatlantic and Latin American markets while diversifying its emissions strategy.