2023-05-05 15:41:27
IAG lost 87 million euros in the first quarter of the year, compared to the 787 it lost in the same period of 2022. The group of airlines led by the Spanish Luis Gallego billed 5,889 million euros between January and March, 71, 4% more than a year earlier, thanks to the recovery in air traffic. IAG’s operating profit was €9 million compared to a loss of €718 million the previous year.
Gallego has highlighted that IAG has posted strong financial results in the first quarter, a period in which IAG group airlines recovered capacity to close to pre-pandemic levels. Iberia’s operating profit, before exceptional items, was 66 million, an improvement of 155 million compared to the first quarter of 2022. The manager highlighted that Iberia obtained this record profit in the first quarter thanks to the improvement in the demand in Spain and Latin America and the recovery of its routes to the United States and that “all our airlines exceeded forecasts, benefiting from solid demand and lower fuel prices during the quarter.” In this regard, the other major company in the group, British Airways, managed to return to profit in the quarter after three consecutive years of losses due to the strong demand for leisure travel in most of the network.
The holding company has ensured that its prospects are encouraging for the summer with around 80% of the revenues forecast for the second quarter already booked. In fact, IAG expects its capacity for the year to be around 97% of year 2019 levels as its airlines focus on their core markets. The group has continued to restore its capacity and it is now approaching current pandemic levels. Thus, during the first three months, capacity, measured in seats per kilometer offered, increased by 46% compared to last year and is 5% below that of the first quarter of 2019.
The group’s total debt at March 31, 2023 was 19,767 million euros, 1.1% less than at December 31, 2022. Net debt (total debt less cash, equivalent liquid assets and short-term interest-bearing deposits ) was 8,398 million euros as of March 31, 2023, 19.1% less than at the end of December last year. Total liquidity as of March 31, 2023 was 15,081 million euros, 7.7% more compared to the 13,999 million euros as of December 31, 2022.
IAG has presented results only one day after announcing the replacement in the presidency of Iberia, in which Fernando Candela will replace Luis Sánchez-Prieto as of July. Gallego has explained that the change is due to an “end of cycle” in the Sánchez-Prieto airline, which will open a new professional stage outside the aeronautical sector. The president of Iberia himself has explained in a press conference that it is a decision that falls “within professional normality” that probably would have been more difficult for him to make if the company had not been, as it is, in a good situation .
The holding company plans for Candela to remain in office until the end of the year, a period in which, according to Gallego, they will reflect on opening a new stage in Iberia for which they need to choose the right person to lead it. To do this, he explained that they will open a process “considering both internal and external candidates.” However, the president of IAG has assured that they have “excellent internal candidates and I don’t think we are going to find anything better outside”.
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