IAG orders 53 Boeing, Airbus jets as Q1 profits soar

(Sharecast News) - British Airways owner IAG on Friday held annual guidance after a surge in first-quarter operating profits and said it was ordering 53 wide-bodied aircraft from Boeing and Airbus as it bet on future demand for long-haul travel despite economic uncertainty. IAG which also owns Ireland's Aer Lingus and Iberia of Spain has ordered 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft. The news comes a day after the US and UK agreed the framework of a free trade deal.

Operating profit before exceptional items increased by €130m to €198m as strong revenue growth and a lower fuel price offset expected cost increases, IAG said.

Revenue grew 9.6% to €7bn as the company reported strong demand despite an uncertain macroeconomic environment but warned that there had been some softness in sales of economy tickets in the US offset by purchases of premium seats.

IAG said its Latin America and Europe operations "continue to be strong" with robust demand for North Atlantic routes.

Reporting by Frank Prenesti for Sharecast.com