IAG and Air France-KLM report record summer profits

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British Airways owner IAG and Air France-KLM became the latest airline groups to benefit from booming demand for leisure travel, as they reported record profits over the summer.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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27 Oct 2023

“During the third quarter we saw sustained strong demand across all our routes,” said IAG chief executive Luis Gallego.

The airline group, which also owns Aer Lingus and Iberia, reported particularly strong appetite for travel across the Atlantic and to leisure destinations in Europe.

Rival Air-France KLM said its operating profit reached a record €1.34bn in the third quarter, up 31 per cent from a year earlier driven by strong summer bookings.

The results from two of Europe’s largest aviation groups underline the industry’s rapid recovery from the disruption of the Covid-19 pandemic. Low-cost airline easyJet has said it expects to report record profits over the summer, while London’s Heathrow airport raised its passenger forecasts this week.

However, the rise in the price of oil and growing geopolitical uncertainty have raised questions over the durability