IAG CEO on Asia Demand, Consolidation & Fuel Prices

Why It Matters

The comments signal heightened competitive pressure on long‑haul pricing and a likely wave of industry consolidation that could reshape European airline ownership and network strength—with IAG well positioned to pursue acquisitions. This matters for pricing, capacity and market concentration across key long‑haul and European markets.

Summary

IAG’s CEO said short-term demand to Asia has risen—partly because Middle Eastern carriers are routing traffic through their hubs—and IAG has added capacity from London but expects the bump to be temporary. He warned Gulf carriers may stimulate demand and exert price pressure, and predicted some airlines could struggle by the end of summer. With a strong balance sheet and about 15% margin, IAG sees the downturn as an opportunity for consolidation and is actively scouting European targets. He suggested Europe’s regulatory attitude may be shifting after the Draghi report, potentially making deals easier than before.

Original Description

International Airlines Group (IAG) CEO Luis Gallego speaks at the International Air Transport Association (IATA) on growing demand in Asia, consolidation & increasing fuel prices.

--------

More on Bloomberg Television and Markets

Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9

Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more.

Connect with Bloomberg Television on:

X: https://twitter.com/BloombergTV

Facebook: https://www.facebook.com/BloombergTelevision

Instagram: https://www.instagram.com/bloombergtv/

Connect with Bloomberg Business on:

X: https://twitter.com/business

Facebook: https://www.facebook.com/bloombergbusiness

Instagram: https://www.instagram.com/bloombergbusiness/

TikTok: https://www.tiktok.com/@bloombergbusiness?lang=en

Reddit: https://www.reddit.com/r/bloomberg/

LinkedIn: https://www.linkedin.com/company/bloomberg-news/

More from Bloomberg:

Bloomberg Radio: https://twitter.com/BloombergRadio

Bloomberg Surveillance: https://twitter.com/bsurveillance

Bloomberg Politics: https://twitter.com/bpolitics

Bloomberg Originals: https://twitter.com/bbgoriginals

Watch more on YouTube:

Bloomberg Technology: https://www.youtube.com/@BloombergTechnology

Bloomberg Originals: https://www.youtube.com/@business

Bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake

Bloomberg Espanol: https://www.youtube.com/@bloomberg_espanol

Bloomberg Podcasts: https://www.youtube.com/@BloombergPodcasts