After a blistering few years, the thrill round Worldwide Consolidated Airways (LSE:IAG) shares has cooled sharply in 2025. Although buying and selling stays sturdy, fears of a pointy slowdown within the world journey market have pushed the inventory decrease.

At 296.2p, the airline firm’s share price is down fractionally (2.1%) for the reason that flip of the yr.

Nevertheless, the discharge of forecast-beating buying and selling numbers on Friday (9 Might) has fed hypothesis that markets are excessively bearish on the FTSE 100 agency. It’s prompted ideas about whether or not the Metropolis’s progress forecasts for the shares may obtain a big dose of jet gas.

Sturdy outcomes

For the three months to March, Worldwide Consolidated stated that revenues elevated 9.6% to €7bn. It celebrated “good demand for air travel across our core markets and for our brands“, describing conditions in North America as “robust” and people in Latin America and Europe as “robust“.

It additionally famous that gross sales of its premium cabins have been robust.

Boosted by a fall in gas prices, the corporate’s working revenue leapt to €198m from €68m in the identical 2024 quarter. Its working margin improved to 2.8% from 1.1% over the interval.

Strong ahead bookings counsel the British Airways proprietor can preserve this momentum within the months forward, too. It was round 80% booked for the present quarter as of 6 Might, with turnover forward of final yr.

The flying group was additionally 29% booked for the second half, matching ranges recorded on the similar level in 2024.

Upgrades coming?

Following its forecast-beating replace, there’s an excellent probability Metropolis forecasts for the short-to-medium time period could also be upgraded. Present estimates be seen under:

The FTSE agency has a number of tips up its sleeve which are driving its industry-leading latest performances.

British Airways — which was cited as performing particularly strongly within the first quarter — has appreciable model energy that draws a loyal buyer base. Should you’re travelling many hours in a cramped tin can, you need to know that you simply’ll be travelling comfortably. BA makes this attainable.

Its bigger premium providing can also be driving revenues increased within the robust local weather.

Are the shares a purchase?

But, regardless of the corporate’s spectacular resilience, I’m not tempted to speculate simply but. That’s though the share price seems to be filth low-cost at present ranges.

In truth, I imagine the leisure large’s cheapness displays the array of dangers it faces.

Within the close to time period, I’m sceptical as as to whether it might proceed defying gravity as commerce tariffs cool the worldwide financial system, and with it spending on luxurious gadgets like holidays. Each Delta and American Airways have dropped their forecasts in latest weeks in an indication of rising strain.

Worldwide Consolidated’s profitable transatlantic routes additionally face mounting strain because the variety of travellers to the US slides. In line with Tourism Economics, abroad arrivals to the States slumped 11.6% in March attributable to “world fallout from the intensified ‘America First’ stance“.

I’m additionally turned off by different extra evergreen threats going through its prime and backside traces. Gasoline price spikes, airport disruptions, and rising competitors pose dangers now and over the long run.

So regardless of a formidable first quarter, I’d nonetheless somewhat discover different UK shares to purchase.