International Airlines Group (IAG) reported a first first-quarter operating profit since 2019 with €9 million recorded in Q1 2023.
The outcome, which was up €750 million year-on-year, was better than expected, the group announced, and came about due to "strong customer demand" as well as a "strong yield performance" and falling fuel costs.
However the group, which includes Iberia and British Airways, reported a loss after tax of €87 million even as revenue climbed 71.4% year-on-year to almost €5.9bn.
At the end of the quarter the group reported cash and cash equivalents of €11.3bn but net debt of $8.3bn, with liquidity slightly over €15bn.
Iberia recorded its best-ever first quarter while British Airways returned to profit for the first time in four years, the parent company reported, amid "stronger performance than expected at every airline, supported by more good progress at IAG Loyalty".
The group's "outperformance" was in the main down to leisure demand, it said, supplemented by IAG Loyalty adding 1.2 million customers and reporting an operating profit of €81 million.
“IAG has delivered a strong first quarter financial performance, as Group airlines recovered capacity to close to pre-pandemic levels", said chief executive Luis Gallego.
IAG received three narrow-bodied aircraft, with 29 "still expected in total" during the rest of the year "We do not expect supplier challenges to have a material impact on our plans", the group said.
An "encouraging outlook for the summer with around 80% of expected quarter 2 revenue now booked" has the group expecting profit for the year to exceed previous expectations.