IAG will announce its 2022 full year results on Friday, following on from a number of positive releases across the European airline sector.
IAG shares have been excellent over recent months, gaining almost 30% in 2023, but the group still remains in its recovery stages post-Covid.
IAG’s third quarter results saw an operating profit of €1.2 billion, compared to a operating loss of €452 million in 2021. In addition, total revenue fully recovered and the group was able to return to profit. The carrier anticipates 2022 operating profit to be approximately €1.1 billion, assuming no further setbacks from Covid and geopolitical developments.
Elsewhere, easyJet, Wizz Air and Tui all reported growth in its most recent results, further arguing in favour of a recovery in European airlines.
Barclays analyst Andrew Lobbenberg recently initiated coverage of IAG with an Equal-Weight rating. The analyst has a positive stance on European airlines and believes pent-up demand and the re-opening of Asia and business travel should overpower weak economics.
With limited restrictions and soaring inflation yet to impact consumer spending, investors will be hoping to see a strong set of results for IAG.
Additionally, traffic to IAG’s brands British Airways and Iberia have grew significantly over the past year. Despite a recent fall in British Airways traffic, it still remains at levels above pre-pandemic and close to its recent highs.
Meanwhile, Iberia organic traffic is at record highs according to Semrush and has recovered significantly from its lows shows in 2021.