LONDON (Reuters) – IAG, owner of airlines British Airways and Iberia, reported a better-than-expected quarterly operating profit for the first quarter on Friday, helped by strong bookings and as it forecasts a busy and profitable summer .
The group reported an operating profit of 68 million euros between January and March, while analysts expected 49 million euros, according to the consensus provided by the company.
On the London Stock Exchange, IAG shares rose 0.88% at 07:24 GMT.
The first quarter is often in deficit for airlines, with fewer reservations at the start of the year.
“Our transformation initiatives and the increase in demand, including during the Easter holidays, have enabled us to once again achieve very good results, with an improvement in turnover and operating profit,” Luis Gallego, chief executive of IAG, said in a statement.
Many airlines hope that the upcoming summer season and lower jet fuel prices will allow them to balance their books by the end of the fiscal year.
IAG, which is no exception, is also working to capitalize on the strong demand.
Airlines, however, have complained about delivery delays from plane makers that could limit their capacity and ability to meet this year’s record demand.
IAG also indicated that it expected slightly higher costs in 2024, while forecasting growth of 7% in passenger transport capacity over the year.
(Reporting Joanna Plucinska; Diana Mandiá, editing by Kate Entringer)
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