IAG, the group of airlines that owns Iberia, Vueling and Level, multiplied its profit by six, to 2,655 million, during last year. They are six times more than the 431 million in 2022. While waiting to close the acquisition of Air Europa throughout this year, the company already recovered its pre-pandemic passenger capacity at the end of 2023.
By airlines, IAG highlights in the information sent early in the morning to the National Securities Market Commission (CNMV) the strength of its Spanish brands. Iberia obtained an operating profit before exceptional items of 940 million, while in the case of Vueling it was 396 million.
“Airline operating companies experienced a significant increase in profitability in 2023, with Iberia and Vueling reaching record levels of operating profit,” the company highlights. The jewel in the crown was once again, after the problems during the pandemic and the following years, British Airways, with 1,431 million operating profits.
The group led by Luis Gallego had a total turnover of 29,453 million in 2023, 27.7% compared to the previous year, and transported more than 115 million passengers, compared to just over 94 million in 2022.
Looking ahead to 2024, IAG highlights that “demand remains solid, with particular strength in leisure travel.” We currently have 92% of the revenue planned for the first quarter of 2024 covered and more than 62% for the first half of the year, above our position last year,” he assures.
One of IAG’s priorities for this year is to “invest in the South Atlantic market, in full structural growth,” of the routes. In this market Iberia will have a special role.
For Gallego himself, “IAG more than doubled its operating margin and profits compared to 2022, generated excellent free cash flow and strengthened its balance sheet. Capacity has recovered to near pre-COVID-19 levels in most of its major markets.”
IAG’s results presentation occurs in the midst of negotiations with the European Commission to close the acquisition of Air Europa. The group presented its route proposal a few days ago, although it hopes that the Community Competition authorities will raise objections to its approach. The airline group expects the resolution of the operation by the end of 2024.