(Bloomberg) — British Airways owner IAG SA said it was well-placed for a strong summer season, with travel demand remaining robust after profit rose in the first quarter.
The airline group, which also owns Spain’s Iberia, said it was focused on key markets within Europe and across the Atlantic, even as it faces challenges in the rest of the world. Forward bookings in the second quarter were above 80%, while the third quarter was 40% booked, Chief Executive Officer Luis Gallego said on a media call.
“The high demand for travel is a continuing trend,” Gallego said on the call.
IAG posted an adjusted operating profit of €68 million ($73.3 million) in the three months ended in March, which exceeded analysts’ €49.5 million estimate. Revenue rose 9.2% from a year earlier to €6.4 billion.
IAG’s shares rose 0.7% at 8:16 a.m. in London. The stock has gained 19% this year.
European airlines are facing a challenging backdrop to the key summer season this year, with the conflict in the Middle East denting demand for travel to the region and a rebound in competition driving down fares. Gallego said IAG is less exposed to Asia compared to its main rivals such as Deutsche Lufthansa AG and Air France-KLM.
The airline group said it has presented a package of remedies to the European Commission on the Air Europa acquisition process, and that its “expectation remains for the process to complete later this year.”
The carrier also brought down its net debt to €7.4 billion at the end of the first quarter from €9.2 billion at the end of 2023.
(Updates from second paragraph with comments from CEO)
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