New Delhi

International Airlines Group, the parent company of British Airways, reported a sharp rise in first-quarter earnings for 2026, driven by sustained demand for air travel, especially in premium segments and transatlantic routes.

In its financial results for the quarter ending March 31, 2026, the airline group posted an operating profit of 351 million euros, marking a 77.3 per cent increase compared to the same period last year. Total revenue rose 1.9 per cent year-on-year to 7.18 billion euros, while profit after tax climbed 71 per cent to 301 million euros.

IAG Chief Executive Officer Luis Gallego said the company delivered a strong quarterly performance, supported by continued demand across its airline networks and brands.

Passenger revenue increased 3.8 per cent to 6.23 billion euros, aided by improved ticket yields and stronger passenger load factors. Revenue per available seat kilometre also recorded a 3.5 per cent rise.

The airline group stated that demand remained particularly strong in premium cabins and on North and South Atlantic routes, which together make up nearly half of the company’s total operating capacity.

Despite the positive quarterly performance, IAG warned that higher jet fuel prices linked to tensions in West Asia are likely to impact profitability during the remainder of the year.

The company said the first quarter was largely insulated from the effects of the conflict, but rising fuel costs are expected to have a more noticeable impact in the coming months.

Fuel and emissions-related expenses increased 1.2 per cent during the quarter to 1.74 billion euros. According to the company, jet fuel prices surged significantly from late February due to disruptions connected to the West Asia conflict and shipping constraints around the Strait of Hormuz. By the end of March, spot jet fuel prices had reached nearly 1,725 US dollars per metric tonne, almost double the levels seen at the end of February.

IAG noted that it remains substantially hedged for the rest of the year, with around 70 per cent of fuel requirements covered, and added that there are currently no concerns regarding fuel supply in its key markets.

Gallego said the company is actively responding to the uncertain environment by managing pricing, operating costs, and network capacity.

The group also highlighted improvements in its financial position. Net debt declined to 4.18 billion euros from 5.95 billion euros at the end of December 2025, while total liquidity stood at 12.73 billion euros.

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IAG further said it remains on course to complete the remaining 1 billion euros in planned excess cash returns by February 2027, expressing confidence in the resilience of its business model and long-term strategy.