Continued from page 48
to get it right”, although that is debatable in travel. Emma Cochrane, CMA acting
executive director of consumer protection and enforcement, said: “We want businesses to stay on the right side of the law. We’re serious about supporting businesses. [But] the CMA is also protecting consumers through enforcement action and progressing its first investigations into pricing practices.” Alan Glen, president of the
Scottish agents’ association the SPAA, slammed the new pricing rules at the SPAA annual dinner last week, saying: “Why fix a problem that didn’t exist? People already accepted they were subject to taxes in other countries and agents knew they must advise clients of resort fees. We weren’t hiding anything.” That point was confirmed
by research for the Travel Weekly Insight Report, released last week, which found a majority of UK holidaymakers expect to pay local taxes or charges on holiday. The research, conducted in
January among almost 1,300 UK adults, found 55% of those likely to take an overseas holiday this year and 60% of those who had a holiday last year expect to pay local tax in resort. An additional one in four were unconcerned – they neither agreed nor disagreed on expecting to pay a local tax. Only 15% did not expect to do so. Abta said it continued to
add to guidance for members. It advised: “Members should still use ‘from’ pricing if not all the travel arrangements are available
at the quoted price.” i To download your free copy of the T
ravel Weekly Insight Report 2026, visit:
travelweeklyinsight.co.uk
IAG reports 26% rise in pre-tax profits to €4.5bn
Ian Taylor
British Airways parent International Airlines Group (IAG) said there will be no return to pre-pandemic levels of business travel when presenting full-year results for 2025 last week, with chief financial officer Nicholas Cadbury describing corporate travel rates in 2018 and 2019 as “ancient history”. The group, which also includes
Iberia, Aer Lingus and Vueling, posted a 26% rise in pre-tax profits year on year to €4.5 billion, with revenues up 3.5% to more than €33 billion. Cadbury described corporate
demand as “strong” but told analysts: “We’re trying to move away from comparing ourselves to 2019. That is kind of ancient history now.” However, IAG reported increased
demand for premium cabin seats among leisure travellers, saying this more than offset the decline in the business travel market.
BA achieved a 15% profit margin
on its operations but “has a lot more to deliver”, according to IAG. Iberia delivered a 16% margin. Speaking before the US and Israel
launched missile strikes on Iran at the weekend and sent oil prices higher, Cadbury described the price of jet fuel as “very volatile”. Chief executive Luis Gallego
The group reported US premium
travel to Europe was “particularly strong” last year and transatlantic demand on BA “robust throughout the year, particularly in premium”. However, passenger numbers
on BA’s North Atlantic routes fell by 0.5% year on year to 13.3 million, with IAG noting the robust premium demand had offset “some third-quarter softness in the US point-of-sale economy leisure segment”. It added: “Demand in northern
Europe has been weaker, exacerbated by higher costs.”
hailed an “exceptional performance” and “world-class financial results”. He reported a 17% rise in operating
profit year on year to €5 billion and forecast another strong year with “long-term demand growth in our core markets and constrained supply”. IAG reported 2.4% capacity
growth year on year across the group in 2025, noting this was lower than planned due to reduced availability of engines for the long-haul fleet. It confirmed a 3% capacity rise this year, although BA will see a 4% increase. The group described bookings for the three months to March as “strong”.
Heathrow profits down 37% despite rise in passengers
Heathrow reported handling a record 84.5 million passengers in 2025 and forecast it would hit 85 million this year as demand “continues to outpace the limits of the airport’s infrastructure”. Announcing annual results
last week, chief executive Thomas Woldbye noted Heathrow’s shareholders recently approved
46 5 MARCH 2026
investment in work on the planning application for a third runway but said: “Delivering the project remains complex and can only proceed once the necessary regulatory and policy frameworks are in place.” He warned the CAA “must put
in place” a charges framework which “gives investors confidence” if a third runway is to be “fully privately financed”. Woldbye reported a near 2%
increase in annual revenue year on year to £3.6 billion but a 37% fall in pre-tax profit to £575 million, saying the benefit of higher passenger numbers was “offset
Thomas Woldbye
by lower airport charges set by the CAA” along with increased maintenance costs. The airport reported a net debt of £15.7 billion, up 7% on the previous year, and said it had earmarked £1.3 billion for investment this year.
travelweekly.co.uk
PICTURES: Shutterstock/Vytautas Kielaitis, AV8 Photos, Have a nice day Photo, Pavel1964
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