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Bloomberg
IAG SA said it’s enjoying strong bookings into this year, led by holiday travel and stable business trips, and predicted a further recovery in 2023 as the aviation industry emerges from its worst-ever crisis sparked by the pandemic.
Full year operating profit will reach about €1.8 billion to
€2.3 billion, while net debt will remain broadly unchanged at €10.4 billion, the parent of British Airways said in a statement. The company won’t pay a dividend for last year.
The airline group had an operating income of €1.2 billion in 2022, after a €2.9 billion loss the previous year. Fourth-quarter operating income slightly exceeded estimates at €486 million. Eighteen analysts surveyed by Bloomberg had predicted a profit of €1.2 billion for 2022.
The company predicted a “full restoration†of 2019 level of capacity by the fourth quarter of this year, while cautioning that it remains “mindful of uncertainty in the macro environment and fuel and non-fuel cost inflation.†The upbeat outlook on capacity mirrors the view of Air France-KLM, which said last week that it also predicts a full recovery by the end of the year.
IAG said that it agreed to buy full control of Spanish airline Air Europa for €400 million, more than a year after the Covid pandemic and antitrust concerns scuttled a previous accord.