Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

BA owner IAG says demand holding strong after summer boost

Published 10/28/2022, 02:18 AM
Updated 10/28/2022, 04:26 AM
© Reuters. FILE PHOTO: British Airways tail fins are pictured at Heathrow Airport in London, Britain, May 17, 2021. REUTERS/John Sibley/File Photo

By Paul Sandle

LONDON (Reuters) - British Airways owner IAG (LON:ICAG) said demand for its flights had not wavered after a strong summer that saw revenue exceed pre-pandemic levels despite a cap on capacity at its London Heathrow hub and lingering COVID restrictions in Asia.

Chief Executive Luis Gallego said all of IAG's carriers - which include Iberia, Aer Lingus and Vueling - were "significantly profitable" in the quarter and the recovery looked set to continue.

The group's capacity will increase to 87% percent of 2019 levels in the fourth quarter, up from 81% in the third quarter.

"We continue to see strong bookings," he said on Friday. "Leisure demand is particularly healthy while business travel continue to recover steadily."

He added that while demand was strong, the group was conscious of the uncertainties in the economic outlook and the ongoing pressures on households.

IAG reported third-quarter adjusted operating profit of 1.21 billion euros ($1.21 billion) in the busy third quarter on revenue of 7.33 billion euros, 0.9% higher than in 2019.

It expected adjusted operating profit for the year to be about 1.1 billion euros, including the 467 million-euro loss it made in the first half.

Shares in IAG, which have risen 19% since the group said on Oct. 13 that its third-quarter profit would be well ahead of market expectations, were trading down 1.3% in early deals on Friday.

IAG said premium leisure revenue had fully recovered by the end of the summer period, while the business channel was around 75% of 2019's level.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

($1 = 1.0028 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.