IAG posts profit surge despite €55m loss at Aer Lingus
Aer Lingus and British Airways owner IAG has posted a better-than-expected profit for the first three months of this year, helped by increased demand despite economic uncertainty, the company said on Friday.
That was despite losses across Aer Lingus and Vueling, which were offset by strong performances in British Airways and Iberia.
Aer Lingus posted a loss of €55m in the first three months of 2025, down from a loss of €82m in the same period last year, with IAG noting: "Aer Lingus and Vueling are more impacted by seasonal variations in operating performance, and both typically report an operating loss in the first quarter."
"The €27m reduction in operating loss for Aer Lingus mainly reflected higher yields."
Overall, the group's revenue increased by almost 10%, with operating profit before exceptional items increasing by €130m to €198m as strong revenue growth and a lower fuel price offset expected cost increases.
IAG also said today it is ordering 53 new Airbus and Boeing aircraft for its long-haul fleet.
The order comprises 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft, which can be deployed within Aer Lingus, Iberia or LEVEL.
IAG said the new aircraft will enable IAG's airlines to grow and replace their long-haul fleets with modern, fuel-efficient planes and will be delivered between 2028 and 2033.
'Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation," said IAG chief executive, Luis Gallego.
"We continue to deliver on our industry-leading financial targets. We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America and intra-Europe.
'We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins and despite the macroeconomic uncertainty."
Looking forward, IAG said its outlook for the year remained unchanged, with the group noting: "We are continuing to see good demand for air travel across our core markets and for our brands.
"Latin America and Europe continue to be strong, and the North Atlantic demand has been robust, with strength in our premium cabin mitigating some recent softness in US point-of-sale economy leisure.
As of May 6, IAG said it is around 80% booked for the second quarter, with revenue ahead of last year, and 29% booked for the second half of 2025, which is broadly in line with last year.
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