The group of IAG airlines (owner, among others, of Iberia and British Airways) obtained a profit after taxes of 2,340 million euros between January and September 2024, 8.8% more than in the same period of the previous year.
According to has notified the holding company aeronauticalprofit before taxes reached 2,955 million euros, 13% more, while operating profit rose 10.5%, to 3,322 million euros.
The group’s turnover grew by 8.2% and reached 24,053 million euros. For its part, total operating expenses were 7.8% higher than the previous year, with a total amount of 20,731 million euros.
In the third quarter (its busiest period), IAG obtained a profit after tax of 1,435 million (up 16.7%), a profit before tax of 1,909 million (up 21%), a profit of operation of 2,013 million (15.4% more) and revenues of 9,329 million (7.9% more) thanks to the growth of its lucrative transatlantic routes, which helped it surpass competing airlines.
IAG, which also owns Vueling, Aer Lingus and Level, said planes flying between London and the United States were fuller this year compared to last and that it had added 4% capacity in the North Atlantic, while I flew more in the South Atlantic. Meanwhile, its competitors, such as Lufthansa and Air France, have had to face rising costs and other problems.
IAG’s drive to control costs, combined with rising ticket prices, cheaper fuel and increased demand for transatlantic flights, helped it maintain its lead.
Iberia, in record numbers
Between January and September, Iberia recorded an operating profit before exceptional items of 816 million, just 0.6% less than a year before, when it reached record figures. In this period, passengers transported by Iberia were 19.5 million (+9%).
IAG’s other Spanish company, Vueling, had an operating profit before exceptionals of 389 million euros until September, 11% more. The airline transported 29.26 million passengers (4.3%).
British Airways’ operating profit until September was £1,385 million (€1,665 million), up 28%. During this time, it transported 34.96 million passengers (+7.1%).
Aer Lingus had an operating profit before exceptional items of 148 million euros, 37.2% less, with 8.4 million passengers transported (+1.9%).
Between January and September, IAG transported 92,975 million passengers (+6.2%)
Between January and September, the IAG group transported 92,975 million passengers (+6.2%), with an increase of 6.9% in supply and 8% in demand. The load factor rose 0.8 percentage points, to 86.8%.
As of September 30, 2024, the net debt of the holding company It was 6,189 million euros after a reduction of 33% compared to the levels with which it began this year. In terms of liquidity, IAG has 13,306 million euros between cash and undrawn credit lines, 14% more, of which 9,837 million (+43.8%) are cash, equivalent liquid assets and interest-bearing deposits. short term.
Share buybacks
IAG has launched a share buyback program for an amount of 350 million euros with the aim of reducing its share capital. Qatar Airways Groupthe company’s largest shareholder, has agreed to participate in the Program in proportion to its current total stake in IAG (25.143%) to maintain this position.
For this reason, it has reached an agreement with the banks according to which it has committed not to sell IAG shares on the market during the program, but rather to offer the entities a number of shares proportional to the number of shares acquired on the market in each session and at a price per share equivalent to the volume-weighted average price at which they traded them that day.
In the presentation of results, the CEO of IAG, Luis Gallegoindicated this Friday that the company has the clear intention of remunerating shareholders and being a “great generator of cash“because that is the “vocation” of the group. Gallego has highlighted that the good results of the group and the “important” cash flow have allowed the company to make the decision to repurchase capital for a value of 350 million with the intention to achieve “sustainable remuneration” for its shareholders.
Within the framework of this “commitment”, the group already distributed an interim dividend of 3 cents per share last September, the first since before the pandemic, and plans to make public its new remuneration policy when it presents the financial results for the year complete.
Air Europa expansion
In addition, the CEO of IAG has pointed out that the group will study its participation in the capital increase that Air Europa is working on to avoid its dissolution next year after canceling its purchase by Iberia’s parent company.
IAG already owns 20% of Air Europa, acquired in an operation that was intended to be completed with the purchase of 100% of the Globalia airline, something that was paralyzed last summer given the high demands of the European Commission regarding competition. .
The Hidalgo family, owner of Globalia, is preparing a capital increase of between 50 and 80 million euros to prevent Air Europa from going into dissolution next year as a result of the losses it has been accumulating since the pandemic and the deterioration of their net worth after the two-year moratorium approved by the Government has expired.
The Hidalgo family, owner of 80% of Air Europa through Globalia, is expected to participate in this capital increase, waiting to know if IAG decides to participate and maintain its percentage in the company’s capital.
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