British Airways-owner IAG (ICAG.L) and Air France-KLM (AIRF.PA) announced strong summer reservations on Friday as holidaymakers continued to plan despite a cost-of-living issue.
IAG, which owns Iberia, Vueling, and Aer Lingus, said summer ticket sales and a full winter season would boost 2023 earnings.
Other major European airlines share its optimism. Lufthansa, easyJet, and Ryanair reported strong summer reservations despite rising inflation and an uncertain economic outlook.
Air France-KLM reported stronger first-quarter revenue and summer ticket sales.
IAG termed the summer forecast “encouraging” and said capacity in its core North Atlantic and Latin American markets was back at pre-pandemic levels, with leisure travelers driving reservations.
The firm now expects yearly earnings to exceed a February range of 1.8-2.3 billion euros ($2.0-$2.5 billion). That range already showed a 90% increase from last year.
IAG said increased demand and decreased fuel prices helped it generate a profit in the three months to March when fewer people travel.
The 9 million euro operational profit before unusual items exceeded economists’ 179 million euro loss.
Air France-KLM’s first-quarter revenue grew 42% to 6.33 billion euros, barely over the average 6.30 billion projected by analysts surveyed by the firm.
Holiday Inn owner IHG Plc (IHG.L) announced a 33% increase in first-quarter revenue per available room (RevPAR), a key hotel performance indicator.
China’s COVID-19 ban has increased travel across the Asia Pacific, benefiting hoteliers.
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