The IAG group reduced its losses by 88.9%, to 87 million, and obtained an operating profit of 9 million euros during the first quarter of 2023, the company reported this Friday. The figure contrasts with the losses of 718 million in the same period last year. It is the first time that the holding has obtained a positive result since 2019 in the first three months of the year.
The airline company led by Luis Gallego entered 5,889 million between January and March, 71.4% more than a year earlier, thanks to the recovery in air traffic caused mainly by tourism.
Regarding Iberia, the Spanish airline obtained a record profit in this first quarter with 66 million euros, the best result of the first quarter in the history of the company.
The CEO of IAG, the Spanish Luis Gallego, assured that the group has registered solid financial results in the first quarter, a period in which airlines recovered capacity to approximate pre-pandemic levels. “All of our airlines beat forecasts, benefiting from strong demand and lower fuel prices during the quarter,†he added. IAG is also seeing an increase in bookings with business travel picking up, albeit at a slower pace than tourism.
“As our operations return to normal, we continue to invest in sustainability, with more fuel-efficient aircraft, and in the customer experience, by upgrading business class cabins on British Airways and Iberia. Over the past year, we have hired thousands of employees across the group and have strengthened our operations to be ready to serve our customers during the peak summer season,†Gallego said.
IAG highlights that the results for the first quarter improve thanks to “the demand for leisure on both long and short haul routes”. Demand was “especially strong in Spain and Latin America, as well as on routes to the US.â€
IAG’s outlook for the summer is encouraging, with around 80% of forecast revenue for the second quarter already booked. At this time, the Group expects its profit from operations before exceptional items for the full year 2023 to be above the higher range of our previous forecast of between €1.8bn and €2.3bn.
