Executives on earnings call note volatility following tariff announcements

International Airlines Group’s corporate volume decreased almost 8% in the second quarter compared with the same period in 2024, and corporate revenue fell about 1%, according to CEO Luis Gallego, speaking on an earnings call. IAG operates British Airways, Iberia, Aer Lingus and Vueling.

Iberia saw the largest corporate volume decline for the quarter, down close to 12% year over year, Gallego said, with its corporate revenue down about 7%. British Airways, he said, “had a decline in volume, but in revenue, we were almost flat.”

Gallego pointed to volatility following the announcement of tariffs for North American markets. British Airways’ corporate revenue in that region was off 3% compared with a year prior, with a “huge impact in April,” but mainly because Easter this year was in the second quarter, he said.

Marco Sansavini, CEO of Iberia, said, corporate is “performing very strong” in Latin America. He said the carrier is ahead in both revenue and volume in that region, not only against 2024, but even compared with pre-Covid.

Despite the quarter’s results, said Gallego, the company still aims to improve business revenue for this year, “driven by a North Atlantic that we see is recovering.”

IAG reported net income before taxes of $1.7 billion, up from $1.265 billion in the second quarter of 2024. Second-quarter capacity increased 2.2% year over year, while load factor fell 1.3 percentage points to 85.4%.