Stay informed with free updates
Simply sign up to the Airlines myFT Digest — delivered directly to your inbox.
British Airways owner International Airlines Group said “robust” transatlantic demand and premium cabin spending helped profits rise by a quarter last year.
The airline group that also includes Aer Lingus and Iberia reported pre-tax profits of €4.5bn, an increase of 26 per cent, on revenues that were 3.5 per cent higher at €32bn.
It was helped by falling fuel costs and by passengers who spent their own money on premium seats.
IAG said demand to fly BA across the Atlantic “was robust throughout the year, particularly in its premium cabins”. The route is the company’s most significant profit driver. It added that the outlook for travel continued “to be supportive”, particularly in its core markets.
There had been concerns earlier last year that transatlantic traffic would suffer from European reticence about travelling to the US during President Donald Trump’s second term.
Earlier this month, Air France-KLM said the strong US dollar was keeping some Europeans away but that US demand to fly to Europe was growing.
The number of BA passengers carried across the north Atlantic fell 0.5 per cent to 13.3mn during the year, IAG said on Friday.
The company also said that “demand in northern Europe has been weaker, exacerbated by higher costs to operate in those markets”.
IAG will return another €1.5bn of excess cash to shareholders, starting with a €500mn buyback, and said it expected “significant further excess cash returns in future”.
