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British Airways owner International Airlines Group has warned it does not expect business travel ever to return to pre-pandemic levels as it reported record profits and outlined plans to return €1bn to shareholders.
The owner of five airlines including Spain’s Iberia and Ireland’s Aer Lingus on Friday said annual operating profit rose 22 per cent to €4.3bn in 2024. It was the second consecutive year of record profits, surpassing the €3.5bn it made in 2023.
“We have seen ongoing strong demand for travel throughout 2024 and now into 2025, particularly across our core markets,” the company said on Friday.
IAG, once reliant on business travel to fill its premium seats, said while demand for corporate travel increased through the year, “we estimate that it will not fully recover to pre-Covid 19 levels”.
Since the end of the pandemic, British Airways and other major airlines have instead managed to fill their business and first-class seats with leisure passengers willing to pay the high prices.
IAG said leisure travel “remains robust as a major priority for households”.
“In recent years we have seen this boosted by a shift as customers value experiences over material purchases,” it added.
IAG’s share price has more than doubled over the past year as investors have cheered a series of strong quarterly financial results, built on high demand for travel, particularly in the group’s key routes across the Atlantic.
The company said it planned to return €1bn in “excess capital” to shareholders during the 12 months from November last year.
