International Airlines Group (IAG) has published its annual results for 2023, showing record annual operating profits of just over €3.5 billion.
The figure of 3,507 million euros exceeds the 3,253 million euros achieved in 2019 before the pandemicand is significantly higher than the group's profits in 2022 of 1,247 million euros.
Capacity for 2023 reached 95.7 percent of pre-Covid 2019 levels and peaked at 98.6 percent in the fourth quarter. IAG said the premium leisure segment continued to perform “very well”, with business traffic recovering “more slowly”.
The group said it expects its British Airways subsidiary to return to pre-pandemic levels of non-premium capacity in 2024, followed by long-haul capacity in 2025 and premium capacity in 2026.
IAG said 68 per cent of BA's Heathrow-based long-haul fleet now offers the business class Club Suite product. with focus on airline's Boeing 787 fleet in 2024.
The group also provided an update on its planned acquisition of Air Europa – the group submitted its regulatory application to the European Commission in December and said it had now moved to Phase 2, “with a resolution expected by the end of 2024.”
Luis Gallego, CEO of IAG, commented on the news:
“In 2023, IAG more than doubled its operating margin and profits compared to 2022, generated excellent free cash flow and strengthened its balance sheet position, recovering capacity to close to pre-COVID-19 levels in the majority of its markets. main.
“In 2024, we will execute our strategy, generating long-term value for the business. We will focus on strengthening our core airline businesses and developing IAG Loyalty and other asset-light growth opportunities, and we will do so while operating under a strong financial and sustainability framework.
“Our airlines operate in the largest and most attractive markets globally and we will continue to invest in our brands to transform the business, improve the customer experience and support the delivery of sustainable growth and world-class margins.
“I would like to thank all teams across the Group for their continued hard work and dedication to implementing our transformation plan.”
This week, the group signed an agreement to purchase 785,000 tonnes of sustainable aviation fuel produced using power-to-liquid technology.
IAG is the first European airline group to announce an agreement with eSAF, meaning the group has reached a third of its goal of operating 10 percent of flights with SAF by 2030.
IAG will buy 785,000 tonnes of eSAF
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