International Airlines Group (IAG) has recorded a 191% year-on-year increase in its operating profit in the first three months of 2025, reaching €198m.

The group, which owns British Airways and Aer Lingus, found that this figure beat expectations set at €133m for this period.

IAG also saw its revenue increase by 9.6% in the three months to 31 March to €7bn, after expecting to hit €6.8bn.

The firm said that these results reflected the strength of the business, as lower fuel prices offset expected cost increases.

In this time, the airline group went from a loss before tax of €4m to a profit of €176m.

Chief executive officer at IAG, Luis Gallego, said: "Our strong first quarter results reflect the performance of our businesses and the effectiveness of our strategy and transformation. We continue to deliver on our industry-leading financial targets.

"We remain focused on strengthening our broad portfolio of market-leading brands across our core markets of the North Atlantic, Latin America and intra-Europe.

"We continue to see resilient demand for air travel across all our markets, particularly in the premium cabins."

Looking ahead, the airline group said that it has sold 80% of its capacity for the second quarter, with revenue ahead of last year.

It added that for the second half of the year, its booking capacity is at 29%, which is broadly in line with the previous year.

IAG stated that whilst it is being mindful of the "geopolitical and macroeconomic uncertainty", its outlook for the full year remains unchanged.

Following the announcement, shares in IAG increased by over 3% to 22.3 pence per share.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, stated that the group’s "market-leading networks, strong brands and fierce operational focus" continues to drive its performance "skyward".

He added: "IAG shows no signs of slowing, and demand for its routes remains strong despite the current pressure on consumers’ incomes. Tariffs had been weighing on sentiment towards the travel sector. But with 80% of flights for the second quarter already booked, the outlook is brighter than many expected.

"That’s also given IAG the confidence to place orders for 53 new Airbus and Boeing aircraft, which will be delivered between 2028 and 2033, highlighting the group’s confidence in the longer-term picture for the travel industry.

"Full-year guidance remains unchanged, with IAG expecting further operating profit growth in 2025, while markets are currently more pessimistic by expecting a 4% decline. After such a strong start to the year and demand holding up well, there could be room for markets to turn more positive on IAG and the industry as a whole."

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