Record annual earnings for BA owner

The owner of British Airways has notched up record annual earnings.

It’s after cashing in on the bounce back in global travel demand.

International Airlines Group (IAG) reported underlying operating profits of 3.5 billion euros (£3 billion) for 2023, nearly three times the 1.3 billion euros (£1.1 billion) in 2022 and higher than its pre-pandemic peak.

The group – which also owns airlines Iberia, Vueling and Aer Lingus – said demand continues to be robust, particularly from leisure travellers, with the group’s airlines 92% booked for the first quarter of the year and 62% booked up for the first half.

Its results showed that pre-tax profits for the year jumped to 3.1 billion euros (£2.7 billion) from 415 million euros (£355 million) in 2022.

In the fourth quarter, underlying earnings lifted 5% to 502 million euros.

Luis Gallego, IAG chief executive, said: “In 2023, IAG more than doubled its operating margin and profits compared to 2022… recovering capacity to close to pre-Covid 19 levels in most of its core markets.”

The group said capacity for the final three months of 2023 was at 98.6% of the levels seen before the pandemic struck in 2019, with full-year capacity at 95.7% of those levels.

At BA, capacity recovered more slowly to 90.1% of 2019 levels due to the slower rebound in Asia Pacific.

The group said it expects to grow overall capacity by around 7% in 2024.

Published: 29/02/2024 by Radio NewsHub