IAG to Report Q3 Earnings Friday – Expects To Return To Profit

IAG is expected to release financial results for the third quarter on Friday. Here is what you should be aware of.

The airline holding company already reported preliminary third-quarter results on 13 October, telling investors that it expects operating profit to be in the region of €1.2 billion. Meanwhile, it said trading during the quarter was better-than-expected and forward bookings show no indication of weakness. As a result, it will make no change to its fourth-quarter guidance.

With a potential to return to profit, how have its shares fared since the update?

The stock has suffered this year (and, of course, before that, during the pandemic), tumbling 41% in 2022 to lows of 90p. However, over the last month, the firm has regained some steam, increasing almost 17%.

In a recent research note, Deutsche Bank analyst Jaime Rowbotham maintained a Neutral rating on IAG’s shares.

Taking a look at web traffic via Semrush data, IAG airline British Airways has shown signs of a recovery in 2022, with organic traffic jumping from lows of 5 million to 8.1 million in October. Additionally, IAG’s Iberia has surpassed pre-pandemic levels, hitting all-time highs (since Semrush began collecting data).

Focusing on Google Trends data, we can see a jump in search interest for both British Airways and Iberia since the start of the year.

After a challenging year for airlines (IAG included,) positive results could help airlines escape from their prior lows. We have recently seen some US airlines report third-quarter data, with JetBlue and Delta Air Lines reporting strong revenues. In addition, EasyJet said, when reporting a trading update for the year ended September 30, that demand remains strong, but it expects to report a loss before tax in the range of £170 million to £190 million.

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