IAG returns to profit in 2022

Anglo-Spanish carrier International Airlines Group (IAG) presented its 2022 financial and operating results. In a press release, the management company, which owns British Airways, Iberia, Aer Lingus, Level and Vueling, highlighted the “strong recovery in profits”.

“2022 was a year of strong recovery, driven by sustained leisure demand and markets reopening”, noted Luis Gallego, CEO of IAG. “At this point of the year we continue to see robust forward-bookings, while also remaining conscious of global macro-economic uncertainties”, he added.

Gallego said: “We are transforming our businesses, with the intention of returning IAG to pre-COVID levels of profit within the next few years, through major initiatives to improve customer experience and operational performance”.

Key financial and operational results for IAG in 2022

• Profits of 431 million euros. In 2021, IAG had reported a loss of 2.933 million.
• The unit cost of fuel grew by 30.2% compared to the previous year.
• The company recovered 78% of the capacity, measured in available seat kilometres  (ASK) it had in 2019, the last full year before the start of the pandemic.
• The company invested 3.9 billion euros in improvements to airline fleets, customer offerings, IT infrastructure and sustainability.
• Net debt was reduced to 10.4 billion euros due to operating profits and working capital inflows.
• As of 31 December 2022, the company’s liquidity reached 14 billion euros, up from 12 billion at the end of 2021.

Outlook for 2023

International Airlines Group expects to recover approximately 98% of its 2019 capacity during 2023. It reportedly forecasts recovery to reach 96% during the first quarter compared to the same period in 2019.

In addition, the company expects operating profit before exceptional items to be between 1.8 billion and 2.3 billion euros this year. The biggest increase would be in the first half of the year.

See also: Final agreement for Air Europa to be acquired by IAG