British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is due to report first-quarter results on 9 May 2025, with the shares down 25% from the five-year highs seen earlier this year but having recovered from a recent plunge on the back of Donald Trump's proposed tariffs.
The quarter is expected to show year-on-year improvements despite a 1.5% drop in Heathrow Airport traffic during the period, said analysts at UBS.
The average City estimate is for revenue of €6.76 billion, with underlying profit (EBIT) of €150 million, up from €68 million a year earlier.
Net income is expected to come in at €7 million, with a net loss of €4 million in the first quarter of 2024.
UBS said it expects trading conditions to "become more challenging as the year progresses".
However, that was before an apparent easing of frostiness between the US and China emerged on Friday, with Beijing signalling that it is potentially open to trade talks.
Shares in the Anglo-Iberian carrier were up 2% on Friday, with major US rivals American Airlines and United both up around 2% in premarket trading.
Separately, research by UBS found that travel spend intentions have recently improved slightly for both leisure and business travellers in the UK and US, while softening in France and Germany.
It highlighted that flight expectations for UK and US travellers are now at or near 2019 levels, with a more stable outlook than previous surveys.
Business travel spend is expected to decline 1.4% over the next 12 months, but the broker noted improving sentiment compared to 2024.