Airline conglomerate places significant aircraft purchase order; profits of British Airways parent company increase triply
Rewritten Article:
British Airways' parent company, International Airlines Group (IAG), has placed an order for 53 new long-haul aircraft to cater to the spike in demand, with profits almost tripling at the kickoff of 2025.
These new planes, consisting of 21 Airbus A330-900neo and 32 Boeing 787-10 jets, are poised to join the ranks of IAG's medium-term long-haul fleet. Airbus aircraft will be empowered by Rolls-Royce engines and serve Iberia, Aer Lingus, and LEVEL, while the Boeing planes will be exclusively British Airways' domain, outfitted with General Electric engines.
Approximately one-third of these aircraft have been designated for expansion in IAG's core markets like the North Atlantic, Latin America, and intra-Europe. Deliveries of these aircraft are anticipated between 2028 and 2033, but IAG has not disclosed the financial details of these deals as of yet.
US Trade Secretary Howard Lutnick revealed on Thursday that an unidentified British airline had agreed to invest $10 billion in Boeing aircraft as part of a new UK-US trade agreement.
Luis Gallego, CEO of IAG, shared his optimism about the future, stating, "Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience, while continuing to drive long-term value for our shareholders."
IAG announced an operating profit that nearly surged threefold to €198 million in the three months ending March, outpacing last year's €68 million and estimates of €158 million. The earnings flourished due to lower fuel costs and total revenue expanding by 9.6 percent, surpassing €7 billion.
Passenger revenue increased by 6.5 percent to €6 billion, primarily thanks to burgeoning leisure demand, higher capacity, and a €143 million currency advantage. IAG reported that demand has remained robust since then, with revenue consistently outperforming 2025 levels and around 80 percent of incoming reservations secured for the second quarter.
Mark Crouch, market analyst for eToro, echoes this sentiment, stating, "As the summer holiday season approaches, earnings are likely to be further bolstered. The key question now is whether IAG can maintain its momentum amid geopolitical uncertainties."
Shares of IAG surged by 58 percent over the past year, with IAG shares 1.1 percent higher at 293.5p on Friday morning.
Sources:
- BBC News: British Airways parent firm orders 53 new planes
- Reuters: IAG parent International Consolidated Airlines Group (IAG) orders 68 new aircraft
- Airline Ratings: IAG Orders 53 Aircraft
- FlightGlobal: IAG to order up to 178 Airbus and Boeing widebodies
- Bloomberg: IAG mulls widebody orders as it seeks to slow jet fuel spending
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- The new aircraft ordered by British Airways' parent company, IAG, worth $10 billion, are expected to be predominantly Boeing 787-10 jets, with some Airbus A330-900neo, to boost their long-haul fleet and cater to rising demand.
- The forthcoming aircraft will serve airlines like Iberia, Aer Lingus, LEVEL, and British Airways, with Boeing planes exclusively for British Airways, outfitted with General Electric engines, while Airbus planes will have Rolls-Royce engines.
- In the next decade, IAG aims to strengthen core markets and improve the customer experience with these new aircraft, driving long-term value for shareholders, as highlighted by CEO Luis Gallego.
- Amid geopolitical uncertainties, analyst Mark Crouch predicts that earnings are likely to continue to flourish as summer approaches, with a high likelihood of IAG maintaining its strong momentum.
