IAG cut its losses by 95% in the quarter thanks to support from Iberia

International Airlines Group (IAG) recorded losses after taxes in the amount of 4 million euro in the first quarter of 2024. This represents reduction by 95.4% in relation to the “red figures” for the same period last year, amounting to 87 million.

The Group received an operating profit of 68 million euros per quarter, seven times more than reported a year earlier, the company notified this Friday National Securities Market Commission (CNMV). The pre-tax loss reached €87 million, an increase of 28.1% compared to the first quarter of 2023. During these months the company earned 6.429 million euros (+9.2%), of which 5.632 million comes from revenue from passenger transportation (+11.7%), and 283 million from the cargo business (-12.4%).

However, Iberia stands out positively in the group’s results, increasing annually 6% its operating profit before extraordinary expenses (€70 million) in the first quarter of 2024. Between January and March, the company managed to transport more than 6 million passengers, 9.5% more

than in the previous year. Capacity offered increased by 15.4%, mainly due to an increase in the number of aircraft, and reached times 85.5% occupancywith increase 15.4% of demand.

As its parent company IAG announced this Friday to CNMV, Iberia will be a group company with some top scores during the quarter.

On the other side, British Airways had an operating profit of 25.57 million euros, 57.14% more, with 81.1% occupancy (+2.3 percentage points) and 5% increased capacity. Another Spanish company Vuelingwhich carried 7.77 million passengers (+7.4%), lost 25 million euro, reducing losses by 60.9%. The airline recorded a load factor of 91%, up 1.7 percentage points, and capacity increased by 2%. Finally, Air Lingus Lost 82 million euros, one more than the previous year, with a 4% increase in the number of seats, 74.9% occupancy, almost unchanged, and 2.1 million passengers (+5.5%).

Balance of IAG results

According to the IAG group, income for the tariff per offered seat-kilometer (AKO) increased by 4.4% in the first quarter of the year compared with the first quarter of 2023, thanks to the Easter calendar and a “strong recovery in tourism traffic”, while business traffic is recovering more slowly. From my side, accounts were increased by 8.2%, to 6.361 million euros.

As of March 31 net debt IAG amounted to 7.438 million euros, which implies decrease by 24% less compared to 2023, while financial debt amounted to 16.164 million (+0.5%) And liquidity HE grew by 12.7%,

up to 13.330 million

CEO of IAG, Luis Gallego, noted that transformation initiatives and increased demand, including the Easter period, “led to strong results, with improvements in both revenue and operating profit.” Moreover, he clarified that the group is “well prepared for the summer” and that ““Strong demand for travel continues to be a strong trend”.

passengers 26.36 million (+8.6%), with a load factor of 83.1% (0.6 percentage points more than in the first quarter of 2023), and general power rose from the group 7% during this time.

Looking ahead to the end of the year, IAG expects travel demand to be robust and positive next year. long-term. Capacity for the remainder of the year is planned taking into account 7% growth, with investments in major markets. In addition, the company plans to generate “significant” free cash flow for the year and maintain a “solid” balance sheet, while focusing on achieving “world-class” margins and profits and aiming to create “sustainable value” and cash earnings for the company. shareholder.

Economic growth in Europe faces challenges in the Middle East

Over the last quarter, IAG increased its capacity in the North Atlantic region by 0.6%with increases at Aer Lingus, British Airways and Iberia. specific income increased 6.5%, and the region’s load factor was 77.8% (up 3 percentage points from the previous year).

IN EuropeCapacity increased by 9%, led by Aer Lingus, British Airways and Iberia, with unit revenue up 5.7%. As in the rest of Europe, strong travel demand and the Easter weekend led to a 6.9% increase in unit revenue.

IAG continues to invest in the region Latin America And Caribbeanmainly through Iberia, but also increasing British Airways capacity and level. Capacity growth in the region for the group as a whole was 14.4% in the first trimester. The group finds “bigger problems” in the rest of the world; in particular, The conflict in the Middle East has affected flights of most of the group’s airlines into the region.

IN Pacific Asiawhich only represents 3.7% Of IAG’s total capacity, capacity increased by 43.4% with the reinstatement of British Airways routes in 2023. The region recorded the highest load factor, reaching 87.3% (+1.5 percentage points compared to last year).