British Airways owner IAG beats Q2 profit estimates
Europe's airlines have broadly managed to dodge turmoil over tariffs, with Air France-KLM and Lufthansa reporting strong second quarters and confirming their annual forecasts this week.
IAG reported operating profit of €1.68 billion (US$1.92 billion) for the quarter, compared with analysts' average forecast of €1.40 billion in an LSEG poll and up 35 per cent from a €1.20 billion profit in the same period last year.
"We continue to benefit from the trend of a structural shift in consumer spending towards travel. We remain focused on our market-leading brands and core geographies, where we continue to see robust performance," Chief Executive Luis Gallego said in a statement.
The group confirmed its full-year financial forecasts and said it was seeing strong demand in its core North Atlantic markets, as well as Latin America and Europe.
IAG's shares were up 2.1 per cent at 0709 GMT.
While Gallego acknowledged volatility in the US economic situation, he said any weakness was mitigated by strengths in other parts of the business.
"The US point-of-sale economy cabin is still weak but it's offset by the strong premium cabin we have ... but it has been improving in the past few weeks," Gallego told reporters on a media call.
US airlines have not fared as well, with Delta pulling its full-year guidance this spring over worries about declining demand.
Growth in the Latin American market has also continued to boost the business, Gallego added.
IAG shares have been among the strongest performers among European airlines in recent years, but this year it has slightly lagged rivals Lufthansa and Air France-KLM as they have recovered from cost pressures.
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