IAG also reported revenues for the first quarter of 2025 increased 9.6% to €7.04 billion.
International Airlines Group (IAG), owner of British Airways and Aer Lingus, will order 53 new Airbus and Boeing long-range aircraft after reporting strong first-quarter results on Friday.
The company said it would purchase British Airways’ 32 Boeing Co. 787-10 aircraft and 21 Airbus SE A330neo planes.
They are expected to be delivered between 2028 and 2033, adding to the 18 aircraft ordered in March.
The aircraft are primarily for replacement, with about a third being used to grow in IAG’s core market, the company said.
IAG said revenue for the first quarter increased 9.6% to €7.04 billion, while operating profit increased by 130 million, to €180 million.
The operating margin also increased to 2.8%.
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IAG praised the strong results of “good operational performance” especially on British Airways, saying Iberia and Volling are “in the most punctual airlines in the world.”
The UK and Spanish companies also praised the “robust” demand across the North Atlantic route, which saw 27.8% of the revenues of available seat kilometers (question) in the first three months to March 2025.
Demand was also strong in Europe (23.3% of total questions), as well as Latin America and the Caribbean (22.5%).
Spain and the UK were a bit disappointing, with only 8.4% of the total questions.
The result is as plane manufacturers are fighting supply chain obstacles and other challenges that have slowed delivery.
However, the IAG acknowledges “geopolitical and macroeconomic uncertainties,” but said its full-year outlook has not changed.
As of May 6, the company had been booked about 80% in the second quarter, earning ahead of last year, with 29% booked in the second half.
IAG CEO Luis Gallego said the company’s strong first quarter results “reflect the performance of our business and the effectiveness of its strategy and transformation.”
For now, the company is focused on strengthening its brand across the North Atlantic, Latin America and European markets.
“We continue to see resilient demand for air travel across all markets, especially despite the uncertainty of premium cabins and macroeconomics.
“Our commitment to financial strength and shareholder value has been reflected in the 530 million euro share buybacks that we have so far completed in 2025, which will result in a total dividend of 435 million euros from 2024, along with a proposal for a final dividend of 288 million euros,” Gallego said.
The announcement saw the 2024 turbulence 2024 under scrutiny for safety as Boeing is looking to increase production of its bestselling 737 Max Jet to a rate of 38 this year.
