British Airways owner International Consolidated Airlines said it ordered 53 planes from Boeing and Airbus, marking a significant investment in its fleet despite uncertainty in the sector stemming from trade tensions. The airline group, which also houses Iberia and Vueling among others, said the aircrafts are due to be delivered between 2028 and 2033.

The company posted a 9.6% increase in revenue to 7.04 billion euros ($7.90 billion) in the first quarter of the year, with growth in both passenger and cargo income.

IAG's Investments Likely to Reap Medium-Term Dividends

0739 GMT - IAG's balance sheet looks "investable" again, with high free cash flow generation despite elevated spending, JPMorgan analysts say in a note. IAG's re-investments, while leading to higher costs in the short term, can potentially drive revenue and higher EBIT margins in the medium term, JPM says. Current EBIT consensus expectations look too conservative, with the potential for earnings upside from stronger pricing driven by leisure demand, JPM says. Shares are up 0.8% at 292.50 pence.(anthony.orunagoriainoff@dowjones.com)

IAG's Results Are Proof of Operational Improvements

0808 GMT - International Consolidated Airlines' result shows the airline group is improving by leaps and bounds, Richard Hunter at Interactive Investor says in a research note. The company's results bode well for the rest of the year as its important North Atlantic market showed a 13% increase in passenger unit revenue. "Indeed, investors who chose to buy in to the recovery while the shares were on the tarmac have been handsomely rewarded and the group's improving financial strength and general growth lead to an increasingly improving flight path," Hunter says, adding that market consensus for the shares as a buy is unlikely to waver. Shares trade up 1.1% at 293.6 pence.(pierre.bertrand@wsj.com)

IAG Exceeds Expectations But Consensus Unlikely to Change

0824 GMT - IAG's first-quarter earnings exceeded expectations thanks to lower fuel prices and increased revenue, JPMorgan analysts say in a research note. They add that they don't expect any major changes to consensus. The company's pre-exceptional operating profit came to 198 million euros, up from expectations of 133 million euros. Despite the beat and amid continuing uncertainty, IAG maintained its guidance, adding that strength in the premium cabin is offsetting recent softness in U.S. economy leisure. "This is the first public commentary around any incremental softness on Transatlantic," the analysts say. JPMorgan adds that IAG's second-quarter revenue being ahead of the prior-year level is a positive development. Shares trade up 1.6% at 295 pence. (pierre.bertrand@wsj.com)

IAG's Result Implies Full-Year Consensus Upgrades, but Lack of Visibility Tempers

0845 GMT - Uncertainty over the demand for third-quarter transatlantic economy flights might temper consensus upgrades for International Consolidated Airlines as the company's result for the first quarter implies around 6% upgrades for the full year, Jefferies analysts say. "We see value in IAG shares, given further self-help opportunities, relatively small carbon headwinds and strong cash generation," they say in a research note. Jefferies adds that the airline group's margins are now higher than before the pandemic, and they can keep growing as the company's long-haul capacity recovers. Shares trade up 1.4% at 294.30 pence. (pierre.bertrand@wsj.com)

IAG Has Stronger Outlook than It Is Given Credit For

0846 GMT - International Consolidated Airlines has a stronger outlook than the airline group is given credit for, RBC Capital Markets analyst Ruairi Cullinane says in a research note. The view comes as the company, also known as IAG, said that it is continuing to see good demand for air travel. It posted first-quarter results in which demand for premium seats mitigated some weakness in U.S. economy demand. "We think IAG has a stronger outlook than given credit for, given a supportive capacity backdrop on the Atlantic, pricing potential from BA product measures, and given scope for business travel recovery to step up further," the analyst says. Shares trade up 2.1% at 296.34 pence. (pierre.bertrand@wsj.com)

(END) Dow Jones Newswires

May 09, 2025 06:59 ET (10:59 GMT)

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