British Airways owner IAG SA said travel demand remained strong after first-quarter profits rose and it was on track for a strong summer season.
The airline group, which also owns Spain's Iberia, said it was focused on key markets within Europe and the Atlantic, despite facing challenges in other parts of the world. Chief Executive Officer Luis Gallego said on a media conference call that futures bookings were over 80% in the second quarter and 40% in the third quarter.
“High demand for travel is a continuing trend,” Gallego said on a conference call.
IAG posted adjusted operating profit of 68 million euros ($73.3 million) in the three months to March, higher than the 49.5 million euros expected by analysts. Sales increased by 9.2% year-on-year to 6.4 billion euros.
As of 8:16 a.m. in London, IAG shares were up 0.7%. The stock is up 19% this year.
European airlines face tough conditions ahead of this year's crucial summer season, with conflict in the Middle East reducing demand for travel to the region and a return to competition driving down fares. Gallego said IAG has less exposure to Asia than major rivals such as Lufthansa and Air France-KLM.
The aviation group has presented a package of remedies to the European Commission over the Air Europa takeover process, saying it “expects the process to be completed in the second half of this year”.
The company also reduced its net debt from 9.2 billion euros at the end of 2023 to 7.4 billion euros at the end of the first quarter.
