IAG earns 2,151 million in the first nine months, almost eleven times more, with a record third quarter

The airline holding company IAG has obtained a profit after taxes of 2,151 million euros in the first nine months of the year, which represents almost eleven times the profits it registered in the same period of the previous year, and has registered a record profit in the third quarter.

The company's income until September has increased by 33.3%, to 22,229 million euros, of which 19,517 (39.2%) come from passenger income. The cargo segment has reported revenues of 866 million euros, 28.8% less.

On the other hand, costs have reached 19,224 million euros, 20.8% more, of which the largest item corresponds to fuel, with an expense of 5,579 million euros (26.8%), and the largest increase It occurs in the heading of 'handling, catering and other operating costs, with an increase of 24.9% and a total expense of 2,891 million euros. Unit fuel costs for the quarter decreased by 6.2% compared to the same period of the previous year.

The operating profit recorded by IAG has been 3,005 million euros, compared to 770 million a year before, as the company notified this Friday to the National Securities Market Commission (CNMV).

In this period, IAG airlines have transported 87.5 million passengers, 26% more, with a load factor of 85.9%, 4.6 percentage points more.

The group's capacity (ASK) has been 25.8% higher than that of the same period of the previous year, while demand (RPK) has registered a growth of 32.9%.

IAG's net debt at the end of September was 17,227 million euros, 13.79% less than what it accumulated as of December 31, 2022. Total liquidity at the end of September was 13,697 million euros, 2% less .

After presenting these results, the company began this Friday's session on the Madrid Stock Exchange with a 3% rise in its share price.

FLEET INCREASE

During the first nine months of the year, IAG has received 20 new aircraft to modernize its fleet, of which nine were incorporated into the Iberia fleet; six, to British Airways; four, to Vueling and one to Aer Lingus. In addition, in recent months it has obtained financing for another 19 aircraft.

In addition, last July it signed orders for more aircraft for future deliveries in order to reinforce the network's growth strategy. In total, there are six Boeing 787-10s for British Airways and one Airbus A350-900 for Iberia.

In recent months, the group has reached salary agreements with the majority of employee groups, including all Iberia teams and cabin crew at Aer Lingus, British Airways and Vueling.

The proposal to British Airways pilots is currently subject to a vote after being recommended by pilots' union BALPA and they are negotiating with Vueling pilots and Aer Lingus pilots and maintenance staff.

RECORD THANKS TO THE "SOLIDITY OF OPERATIONS"

In the third quarter, the company obtained a profit after taxes of 1,230 million euros (44.2%), a record figure thanks to the "solidity of operations" and a "much more solid" balance sheet.

In the quarter, revenues were 8,646 million euros, 18% more, of which 7,733 million came from the passenger business, 20.5% more. Invoicing for cargo transportation has decreased by 29.5%, to 263 million euros.

Total expenses for the quarter rose 12.9%, to 6,901 million euros, and operating profit registered an increase of 43.5% compared to the same period of the previous year, with a total of 1,745 million euros. . The profit before taxes is 1,578 million euros, 56.7% more.

In this quarter, the group's airlines transported 33.2 million passengers (12.5%), with a load factor of 88.9%, 1.9 percentage points more. Demand has been 20.6% higher, while the company's supply has increased by 17.9%.

The company's CEO, Luis Gallego, has indicated that the strong sustained demand on all routes throughout the summer, especially transatlantic routes and in all leisure destinations in Europe, has been "especially strong" during the third quarter. .

Gallego has highlighted that these good results are allowing them to invest in the business and reduce debt, while continuing to develop their hubs in Barcelona, ​​Dublin, London and Madrid.

THE CAPACITY, AT 96% WITH RESPECT TO BEFORE THE PANDEMIC

Looking ahead to the end of the year, IAG expects capacity to be around 96% of pre-pandemic levels and bookings for the fourth quarter are as expected, at a level of 75%.

However, the company states that it continues to take into account the macroeconomic and geopolitical uncertainties that could affect the rest of the year.

The group has 73% fuel coverage for the fourth quarter. For the full year, total fuel costs would amount to approximately €7.6 billion for the full year.

It also expects to generate sustainable free cash flow and for net debt as of December 31 to reflect "the usual seasonal increase."

IBERIA INCREASES ITS PROFIT BY 76%

By airlines, Iberia is the one that has registered the greatest growth in its operating profit, with an increase of 76%, up to 449 million euros.

Strong operations across its network have driven revenue growth of 19%, with capacity growth of 18% and unit revenue per passenger of 5%, with leisure maintaining its strength and travel mainly recovering pre-crisis levels.

The airline continues network investment in the Latin American and Caribbean markets and has announced the new Doha route as a gateway to Asia.

For its part, Vueling has recorded a record operating profit of 282 million euros (8.8%). Vueling is maintaining capacity at 2019 levels as negotiations continue with pilots to agree a collective bargaining agreement and signed a secured cabin crew agreement early in the third quarter.

British Airways' operating profit is 718 million euros, 48.96% more. Capacity growth (25%) focused on increasing frequencies and larger capacity aircraft, as well as rebuilding the Asian network. British Airways recently announced the resumption of flights to Abu Dhabi in 2024.

Aer Lingus' operating profit was €196 million, up 41%, and its total revenue increased by 16%, driving strong profit growth and operating margins of 25.5%.