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Thursday, March 23, 2023

BA and Iberia first year of profits since pandemic

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International Airlines Group (IAG), the company that owns British Airways and Iberia, has reported yearly earnings for the first time since the COVID pandemic.

IAG, which also owns Aer Lingus, claimed that core markets experienced a “solid comeback” in 2022 as a result of the removal of COVID restrictions, which allowed the firm to generate a profit once more.

IAG provided financial information on Friday, February 24, 2023, along with the assurance that 2023 would witness a further rebound and profits between €1.8 and €2.3 billion.

Operating profit before exceptional items reached €1,225 million in 2022, according to IAG, an increase of €4,195 million from the full year of 2021.

IAG CEO Luis Gallego predicts that “during the next few years” IAG’s profits will return to pre-COVID levels.

IAG are conscious of the “macro environment” and the rise of fuel and non-fuel costs, nevertheless.

“2022 was a year of strong recovery, driven by sustained leisure demand and markets reopening. 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,” Gallego said.

IAG Chief Executive Luis Gallego also told the Financial Times that disruptions at Heathrow Airport this summer would hinder the travel industry’s comeback.

“We are worried about Heathrow. We have very strong demand and we hope that Heathrow is going to put in the resources necessary for the capacity we are going to fly,” he explained.

The greatest Spanish rival to Iberia, Air Europa, was also recently acquired by IAG.

Gallego added: “With the acquisition of Air Europa now agreed but subject to regulatory and other approvals which could take around 18 months, we are intending to welcome another leading airline to the Group. This acquisition will enable us to grow Madrid as a hub, offering a gateway to Latin America and beyond, with benefits for customers, employees and shareholders.”

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