The group that includes Iberia, British Airways and Vueling returns to profit compared to losses of more than 2,600 million a year ago due to the restrictions of the pandemic
Due to the pandemic, airlines were severely affected by mobility restrictions. Some of the biggest airlines even had to be bailed out by the states (in Spain it happened to Air Europa) and they all suffered a lot in their bills. This was the case with the IAG group, which includes Iberia, British Airways, Vueling and Aer Lingus, which is now making a profit, earning 199 million euros after a loss of 2,622 million a year ago.
In the first nine months of 2022, the holding company achieved a net profit (after tax) of 170 million euros, compared to 2,775 million losses in the same period last year, as reported by the group to the National Market Commission of Securities (CNMV).
The end of restrictions due to the weakening of the pandemic has seen a recovery in tourism and travel around the world, with forecasts forecasting Q1 2023 air capacity to be 95% compared to 2019, before the covid crisis. For the fourth quarter, capacity will be approximately 87% of 2019, bringing the year as a whole to approximately 78% of pre-pandemic capacity.
“Demand in the holiday segment is particularly strong and revenues are back to pre-pandemic levels. Business travel continues to steadily recover,” said Luis Gallego, CEO of IAG, who said his goal is to “adjust operations to meet demand and take advantage of high liquidity.”
The group’s revenues amounted to 16,680 million euros, four times more than last year. Still, the company said it expects earnings before one-offs of around €1.1 billion this year at current fuel prices and exchange rates.
The holding company expects year-end net debt to increase due to seasonal booking patterns and capital expenditures related to aircraft deliveries in the fourth quarter.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
