IAG Sees Strong Outlook for Latin American Operations in 2025
International Airlines Group (IAG), the parent company of Iberia and British Airways, among others, is anticipating a strong performance in Latin America throughout the remainder of 2025. This outlook follows an encouraging first quarter, despite ongoing global macroeconomic uncertainty.
During the first three months of the year, IAG posted a profit of €176 million, marking a significant turnaround from the €93 million loss recorded in the same period of 2024. The robust demand for international travel positively impacted the group’s various business units, helping the company surpass last year’s negative results.
In the Latin American market, Iberia stood out as a key driver of performance, while LEVEL and British Airways also showed operational progress—though British Airways maintains a more limited footprint in the region compared to its Spanish counterpart.
In Q1 2025, Iberia continued expanding capacity on its Latin American routes, a trend that began in 2024. Connections from Madrid-Barajas (MAD) to cities such as Bogotá (BOG), Buenos Aires (EZE), and Santiago de Chile (SCL) were among those benefiting from increased frequencies. IAG noted, “Capacity growth during the quarter remained high at 7.1%, as Iberia in particular continues to add frequencies to its major destinations. Strong demand in the market is reflected in the 1.0% rise in unit revenue per passenger, despite the negative impact of increased capacity.”
A similar trend was observed with LEVEL, the group’s long-haul low-cost carrier. The airline increased its frequencies from Barcelona-El Prat (BCN) to the capitals of Argentina and Chile. In Santiago’s case, LEVEL appears to be leveraging a network of connections through Vueling, another IAG carrier, although each airline operates independently.
Looking ahead, IAG remains confident in the continued strength of its Latin American operations, which thus far show no signs of being affected by the global environment. The group has announced additional capacity increases for Iberia and LEVEL on key routes such as Buenos Aires (EZE) and Santiago (SCL), while maintaining current levels on flights to Bogotá (BOG) and Lima (LIM).
Luis Gallego, CEO of IAG, stated that the group aims to strengthen its brand portfolio in the region. Given the geographical and cultural ties with Latin America, Iberia and LEVEL are positioned as central players in the group’s strategy, underscoring IAG’s commitment to the Latin American market.
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