BA parent returns to profit for the first time since 2019

During the three months to 31 March 2023, IAG recorded an operating profit before exceptional items of €9 million, up €750 million versus the same period last year, which the company owed to ongoing strong customer demand across all airlines. 

The business anticipates the positive momentum will continue into the summer, with around 80% of expected second-quarter revenue already booked. It expects capacity to be around 97% of 2019 levels for the full year.

IAG predicts its full year operating profit before exceptional items to exceed its previous guidance of €1.8 billion to €2.3 billion. 

The positive return, IAG said, has been bolstered by an increase capacity deployment in its core Latin America and North Atlantic markets, which are now back at pre-pandemic levels of capacity, as well as growing Vueling’s year-round leisure network. 

Despite Aer Lingus being more "seasonally exposed" than the group’s other airlines, it is seeing good demand to European leisure destinations as well as to the US and the Caribbean.

Meanwhile, British Airways returned to profit in the first quarter of 2023 for the first time since the same period in 2019.