IAG Reports First Half 2023 Net Income of €921 Million or €0.186 per Share
IAG has reported a first half 2023 net profit of €921 million or €0.186 per share on a year-over-year increase in revenue of 45.3 percent to €13.6 billion. At June 30, 2023, the Group had total liquidity of €15.6 billion.
On Friday (July 28, 2023), the International Airlines Group (IAG) reported their first half (H1) and second quarter (Q2) financial results for the period ending June 30, 2023. The Group reported a first half net profit of €921 million or €0.186 per share on a 45.3 percent year-over-year increase in revenue to €13.6 billion. For the second quarter, IAG reported a net profit of €1.0 billion, up from €133 million during Q2 2022. At June 30, 2023, the company had €15.6 billion in liquidity, including cash, cash equivalents, interest-bearing deposits and undrawn general and overdraft facilities, as well as aircraft-specific financing. IAG ended H1 2023 with total net debt of €7.6 billion, down from €10.4 billion at December 31, 2022.
In Friday’s financial announcement, International Airlines Group’s CEO, Luis Gallego, said,
“Our strong profits since the start of the year are helping to fund investment for our customers, and to improve our balance sheet by reducing debt. We are aiming to be back to pre-pandemic capacity at the end of this year. These results are thanks to a strong performance from all companies across the Group, and we would like to thank our teams for their hard work during the year so far. Customer demand remains strong across the Group, particularly for leisure travel, with around 80% of passenger revenue for the third quarter already booked. And our airlines have put in place plans to support operations during the busy summer period.”
As measured in available seat kilometers (ASKs), IAG has restored 94 percent of pre-pandemic 2019 capacity, and the company expects full-year capacity to reach 97 percent of 2019 levels.
During the first half of 2023, 11 new aircraft were delivered to British Airways, Iberia and Vueling. For the full year, IAG expects to receive 30 new aircraft, including an additional leased aircraft for LEVEL. British Airways, Iberia and LEVEL will receive six, four and one new widebody aircraft, respectively, while 19 new narrowbody aircraft will be delivered across all airlines. Currently, IAG’s fleet includes 43 percent or 243 next generation aircraft, delivering reduced fuel consumption and emissions as well as a smaller noise footprint.
In a separate press release today, IAG announced the conversion of six Boeing 787-10 options held by British Airways into firm orders, and has also added another six 787-10 options to their long-haul orderbook. Additionally, the Group has converted one Airbus A350-900 option held by Iberia into a firm order. The six Boeing 787-10 Dreamliners will be delivered to British Airways in 2025 and 2026.
Further commenting on the order conversions, IAG’s Chief Executive Officer, Luis Gallego, said,
“These latest generation aircraft will contribute to restoring capacity to pre-pandemic levels. They will be among the most fuel-efficient aircraft in our long-haul fleet and will help towards our commitment to achieve net zero carbon emissions by 2050.”
The International Consolidated Airlines Group (IAG) is one of the world’s leading airline groups and has a combined fleet of 558 aircraft. The Group’s airlines include Aer Lingus, British Airways, Iberia, Level and Vueling. The company’s other subsidiaries include IAG Loyalty, IAG Cargo, and IAB Global Business Services (GBS).
Source: International Consolidated Airlines Group (RNS Numbers 4857H and 4818H)