British Airways Owner Warns Business Travel Will Not Return to Pre-Pandemic Levels
IAG Posts Record Annual Profits Driven by High-Spending Leisure Passengers
The owner of British Airways, International Airlines Group (IAG), has warned that business travel is unlikely to return to pre-pandemic levels, as shifting work habits and cost-cutting measures continue to affect corporate travel demand. Despite this, the airline group has reported record annual profits, driven primarily by high-spending leisure passengers.
IAG, which also owns Iberia, Aer Lingus, and Vueling, revealed that its profits surged to unprecedented levels in 2024, fueled by strong demand for premium leisure travel. Wealthier tourists and holidaymakers have been willing to pay higher fares, offsetting the decline in corporate bookings. The group’s CEO, Luis Gallego, acknowledged that while business travel remains an important segment, companies are now relying more on virtual meetings and reducing travel budgets.
“Business travel is recovering, but it is clear that it will not return to the levels we saw before the pandemic,” Gallego said. “However, premium leisure demand continues to be very strong, and this has helped drive our record financial performance.”
The shift in travel patterns reflects a broader trend in the aviation industry, where airlines have adapted their strategies to cater to affluent leisure travelers. First and business-class cabins are increasingly occupied by tourists rather than corporate
clients,