Aviation giant IAG is returning to profit after incurring billions of losses from the pandemic. The group, the parent company of Iberia, British Airways, Vueling and Aer Lingus, made 199 million euros between January and September, a figure far short of the 2,622 million losses it recorded in the same period in 2021 due to restrictions on the aviation sector. In the context of the Corona virus.
The result is conditioned by the big third quarter that the group scored. IAG already notified the market a few weeks ago that it expects an operating profit before the items for more than 1.2 billion from a more positive than expected summer campaign. Finally, the recorded profit of operations in this period amounted to 1,208 million euros.
The group’s income in this period grew to 7,329 million euros, representing a 0.9% more than in 2019 Although some restrictions remain in place at Heathrow, Asia Pacific destinations remain largely closed. Capacity compared to 2019 in this period was 81%. In Europe it already reaches 91%.
IAG expects capacity for the fourth quarter of 2022 to be approximately 87% of 2019, which would make full-year 2022 capacity around 78% of 2019 levels and for the 2023 quarter to be approximately 95% of 2019.
On the financial front, the company has specified that it expects, at current levels of fuel prices and currency exchange rates, to record a profit from operations before exceptional items of approximately €1,100 million in 2022.
The holding company is also confident that the net cash flow from operating activities will be significantly positive for the year. This is based on the fact that “new setbacks related to COVID-19 or the physical effects of geopolitical events” are not expected.
“Demand in the holiday segment is particularly strong and revenue has recovered to pre-pandemic levels. Business travel continues to recover steadily,” said Luis Gallego, CEO of IAG.
“We are focused on adapting our operations to meet demand, enhancing our balance sheet by rebuilding our profitability and cash flow, as well as leveraging our high liquidity. This will allow us to allocate capital and invest in our services and people in a disciplined manner to increase our capacity and enable future growth.”