International Airlines Group, the owner of British Airways, Iberia and Aer Lingus, warned Friday of “some softness in underlying premium demand”, despite posting a sharp jump in Q1 profits. As corporate executives cut back on premium travel — in response to sluggish economic activity and the threat of terrorist attacks — the group has said it reining in its capacity growth this year. IAG’s comments led some to consider the potential for a wider fall in the highly profitable first and business-class passenger segment. “The question is whether this is a blip,” said Gerald Khoo, transport analyst at of Liberum. “To what degree is this a lead indicator of what might happen in the wider economy?” Willie Walsh, IAG’s chief executive, said it was difficult to discern whether the slowdown had been due to recent terrorist attacks in Paris and Brussels, economic conditions, or the timing of Easter — which is always a dampener on business travel. Early indications of bookings in Q3 suggested they were beginning to return to normal levels. However, “they tend to take a number of weeks before they stabilise,” Walsh added. “It is still a bit early to call whether that pattern will be exactly same after Brussels.” Business and first class travel is a lucrative segment for airlines, generating between 10-20% of passenger volumes but 45-60% of revenues.<br/>
oneworld
International Airlines Group would consider adding Bombardier Inc's CSeries jet to its fleet in future, said its CEO, adding that confidence in the aircraft was boosted by a recent order. Bombardier secured a major order for its new CSeries on Thursday when Delta Airlines ordered 75 jets, a deal which the manufacturer hopes is a turning point in its attempt to break into the fleets of top airlines. IAG CE Willie Walsh said Friday that while the CSeries was not currently on his shopping list, he would continue to look at it as an option. "It's not part of our plans at this stage but having said that there's plenty of scope in our future plans to look at the CSeries as a potential aircraft within the IAG fleet," he said. The CSeries serves the niche market for 100-seat planes spurned by larger rivals Boeing and Airbus , where Bombardier faces competition from Brazil's Embraer .<br/>
American Airlines Group terminated CE Douglas Parker's employment agreement on his request but said he would continue to be the chairman and CEO of the company. Parker changed his employment status to "at will" with the termination of the agreement, the world's largest airline by traffic said on Friday. The company said he would no longer be contractually entitled to receive a set level of compensation and benefits. American Airlines' stock fell as much as 4.2% to a more than eight-month low of US$34.46 in late morning trading. "This was done at my request, because it didn't seem right to me that I should be the only person at American with an employment contract," Parker said. "The contract protected me against a number of things that I don't think I should be protected against – such as if I get fired or if unhappy shareholders gain control of the American board," he added.<br/>