British Airways owner IAG beats second-quarter profit estimates

Published Fri, Aug 1, 2025 · 02:47 PM

British Airways owner IAG reported better than expected second-quarter earnings on Friday (Aug 1), helped by strong demand for its transatlantic routes despite fears of knock-on effects from US President Donald Trump’s tariff war.

Europe’s airlines have broadly managed to dodge turmoil over tariffs, with Air France-KLM and Lufthansa reporting strong second quarters and confirming their annual forecasts earlier this week.

IAG reported an operating profit of 1.68 billion euros (S$2.49 billion) for the quarter, compared with analysts’ average forecast of 1.4 billion euros in an LSEG poll, and up 35 per cent from a profit of 1.2 billion euros in the same period last year.

“We continue to benefit from the trend of a structural shift in consumer spending towards travel. We remain focused on our market-leading brands and core geographies, where we continue to see robust performance,” chief executive Luis Gallego said in a statement.

The group confirmed its full-year financial forecasts and said it was seeing strong demand in its core North Atlantic markets, as well as Latin America and Europe.

US airlines have not fared as well, with Delta pulling its full-year guidance this spring due to worries over dropping demand.

IAG has been one of the strongest share performers compared with other European airlines in recent years, but this year has lagged rivals Lufthansa and Air France-KLM as they have recovered from cost pressures. REUTERS

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