IAG, the parent company of British Airways and Aer Lingus, has revealed plans to add 53 new aircraft to its fleet, in addition to reporting better-than-expected results for Q1.
The order includes 32 Boeing 787-10s for British Airways and 21 Airbus A330-900neos for Aer Lingus, Iberia and LEVEL, as reported by .
Subject to shareholder approval, the delivery of these new aircraft is expected between 2028 and 2033.
This follows an earlier order placed in March for another 18 aircraft, including six Airbus A350-900s for Iberia, six Airbus A350-1000s and six Boeing 777-9s for British Airways.
In a separate announcement, IAG reported a 9.6% increase in revenue for the first quarter of 2025, reaching €7bn (£5.94bn), up from €6.4bn the previous year.
Operating profit more than doubled from €68m to €198m, while post-tax profits rose from a €4m loss last year to a €176m profit in 2025.
The company attributed this surge in operating profit to robust revenue growth and lower fuel prices, which helped offset anticipated cost increases.
British Airways owner on Trump tariffs
Despite the geopolitical and macroeconomic uncertainty surrounding Trump's tariffs, the firm does not anticipate any significant impact on its outlook for the coming year.
IAG's chief executive, Luis Gallego, has reported that the group is experiencing "resilient" demand for air travel across its key markets, with brands such as British Airways, Iberia, Vueling, and Aer Lingus performing well.
"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," said Gallego.
The aviation giant has successfully executed share buybacks worth €530m (£449m) in 2025 and proposed a final dividend of €288m, culminating in a total dividend of €435m for 2024.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "The group's market-leading networks, strong brands, and fierce operational focus continue to drive performance skyward. Profitability's also getting a helping hand from falling fuel costs.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 per cent of flights for the second quarter already booked, the outlook is brighter than many expected."
City analysts reiterate 'Buy' rating
In light of these results, Gerald Khoo, a research analyst at Panmure Gordon, has reaffirmed his 'Buy' rating on IAG shares, setting a price target of 500p.
Khoo commented: "IAG trades on a 2025 P/E of 5.2x...which we consider to be attractive. Although the share price has recovered over the past month, there has still been a net adverse impact from fears over the fallout from the US tariff turmoil on air travel demand, to/from the US in particular. IAG's outlook comments suggest this may not be fully justified, given the robust overall demand and strength in the premium cabin. In any case, looking beyond the very short term, we consider IAG's rating to be wholly inconsistent with the group's strong margins."
