• IAG reports operating profit of €1.25bn
• The group anticipates full year operating profit to be between €1.8bn and €2.3bn
• IAG announces deal to acquire 80% of Air Europa for €400m

IAG reported a strong recovery in profits in its full year results and said its seeing strong bookings into the start of this year.

The multinational airline holder reported total revenue up a staggering 173% to €23bn. IAG said it saw a strong recovery in its core markets following all Covid restrictions being lifted, driving momentum in leisure and business demand.

IAG reported an operating profit of €1.25bn, bouncing back from a loss of €2.77bn in 2021. Meanwhile, the firm restored 87% of 2019 capacity by Q4 and 78% for the full year.

“2022 was a year of strong recovery, driven by sustained leisure demand and markets reopening,” stated Luis Gallego, IAG Chief Executive.

 Gallego added, “at this point of the year we continue to see robust forward-bookings, while also remaining conscious of global macro-economic uncertainties. We are transforming our businesses, with the intention of returning IAG to pre-COVID levels of profit within the next few years.”

Looking forward, IAG anticipate a further recovery in profits in 2023. Full year operating profit is expected to be in the range of €1.8bn and €2.3bn.

Alongside its annual results, IAG announced a deal to acquire 80% of Air Europa for a considerable €400m. IAG seeks to take advantage of the market’s development prospects in Latin America and the Caribbean while enhancing connection to Asia.

IAG shares are up over 2% at the time of writing.

By Jamel Boughedda