British Airways owner IAG lifts profit forecast on travel boom

British Airways owner IAG has raised its profit forecasts, becoming the latest airline to benefit from a boom in travel this year.

The owner of airlines including Iberia, Aer Lingus and Vueling on Friday said it expected full-year operating profit before exceptional items to be above the €1.8bn to €2.3bn range it forecast in February.

Europe’s three big full-service airline groups — IAG, Lufthansa and Air France-KLM — have reported strong sales and optimistic outlooks for the summer season this week, buoyed by continued demand for travel and passengers’ willingness to pay high ticket prices.

IAG also reported a profitable first quarter for the first time since 2019, a performance it said beat expectations thanks to high revenues and lower fuel prices.

First-quarter operating profit before exceptional items was €9mn, compared with a loss of €741mn in the same period last year.

“All our airlines performed above expectations,” IAG chief executive Luis Gallego said.