Date: May 2025
The International Airlines Group (IAG)—which owns popular airlines like British Airways, Iberia, Aer Lingus, and Vueling—has shared a positive financial update for the first quarter of 2025. Despite a slight slowdown in economy class bookings from U.S. passengers, IAG says demand for premium cabins (like business and first class) remains strong and is helping boost overall performance.
What’s Driving the Growth?
According to IAG:
- Premium travel is booming – More passengers are choosing to fly in luxury, with demand for business and first class seats growing steadily.
- North Atlantic routes are performing well, especially between the U.S. and Europe.
- Passenger revenue per seat is up by 3.2%, with a remarkable 13% increase on transatlantic flights.
Revenue Snapshot
- Total Revenue: €7.04 billion (up by nearly 10% from last year)
- Operating Profit: €198 million (up from €68 million in Q1 2024)
Even though some American economy travelers are cutting back due to economic concerns, those choosing premium travel are helping IAG stay strong.
New Aircraft Orders for the Future
To keep up with demand and modernize its fleet, IAG has placed a massive order:
- 71 brand-new long-range aircraft, including:
- 32 Boeing 787-10 Dreamliners
- 21 Airbus A330-900neos
Deliveries will begin in 2028 and continue through 2033. These fuel-efficient jets will help IAG grow its international network.
Looking Ahead
IAG remains confident about the rest of 2025. About 80% of seats for the next quarter are already booked, and revenues are expected to rise even further.
In short: Even with some economic uncertainty in the U.S., IAG’s focus on premium experiences and smart investments is helping it fly high in 2025.
