IAG Shares Rise: Maintains Outlook Despite Macroeconomic Uncertainty

International Consolidated Airlines Group (LON: IAG) opened higher on Friday after the airline group said it made a strong start to 2025 and reaffirmed its full-year outlook. IAG cited resilient travel demand and ongoing strategic execution for its solid performance.

After closing Thursday’s session at just over 290p a share, IAG opened at 292.7p on Friday. 

The owner of British Airways and Iberia posted a 9.6% year-on-year rise in revenue to €7.04 billion for the first quarter. Operating profit before exceptional items surged to €198 million, up from €68 million a year earlier. This was aided by strong passenger yields and a decline in fuel prices.

CEO Luis Gallego said the results “reflect the performance of our businesses and the effectiveness of our strategy.” He noted robust demand “across all our markets, particularly in the premium cabins.”

The group saw passenger revenue per available seat kilometre rise 3.2%, led by strength in North Atlantic routes, where revenue per seat climbed 13%. 

“The North Atlantic region continues to be a major area of strength for IAG,” said the firm.  “British Airways is focusing on strengthening its network (e.g. adding frequency to Austin, Washington) whilst managing for greater operational resilience.”

However, performance in domestic markets (Spain and the UK) was weaker, with unit revenues falling 4.5%. 

Despite broader macroeconomic uncertainty, IAG said it remains around 80% booked for Q2. The company said revenue is ahead of last year and expects trading to remain solid. Capital expenditure for the year is expected to be €3.7 billion.

“Whilst being mindful of the geopolitical and macroeconomic uncertainty, our outlook for the full year is unchanged,” IAG added.

The company has proposed a final dividend per share of €0.06.