IAG Returns To Profit

IAG reported its third-quarter results on Friday, which saw the airline holding firm return to profit as travel demand recovered.

The group posted an operating profit of €1.2 billion, compared to a loss of €452 million a year ago.

Meanwhile, revenue jumped to €7.34 billion and was 0.9% above the levels shown in 2019. This came despite restrictions imposed at London Heathrow airport and Asia remaining closed.

All of IAG’s airlines, according to Chief Executive Luis Gallego, are “significantly profitable” and are continuing to see strong passenger demand.

Gallego added that despite demand remaining strong, IAG still remains “conscious of the uncertainties in the economic outlook and the ongoing pressures on households.”

Meanwhile, IAG now expects 2022 operating profit to be approximately €1.1 billion and net cash flow to be significantly positive for the year.

As for its fourth quarter, the group expects capacity to be at 87% of 2019 levels, up from 81% in the third quarter.

Shares of IAG are currently trading 1.3% lower on Friday but have gained 17% over the last month.

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