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IAG Reports Full Year 2023 Net Profit of €2.66 Billion or €0.506 per Share

The International Consolidated Airlines Group (IAG) has reported a full year 2023 net profit of €2.66 billion or €0.506 per share (adjusted) on a year-over-year increase in revenue of 27.7 percent to €29.5 billion.


IAG Reports Fourth Quarter and Full Year 2023 Financial Results - Courtesy IAG

On Thursday (February 29, 2024) the International Consolidated Airlines Group (IAG) reported their fourth quarter and full year financial results for the period ending December 31, 2023.  For the fourth quarter, IAG reported a net profit of €504 million on a year-over-year increase in revenue of 13.1 percent to €7.2 billion.  IAG’s full year 2023 net profit totaled €2.66 billion or €0.506 per share (adjusted) on a 27.7 percent increase in revenue versus FY 2022 to €29.5 billion.  At December 31, 2023, IAG had cash, cash equivalents and interest-bearing deposits of €6.84 billion and committed and undrawn general and aircraft facilities of €4.79 billion for total liquidity of approximately €11.62 billion.    


In Thursday’s announcement, IAG’s Chief Executive Officer, Luis Gallego, said,


“In 2023, IAG more than doubled its operating margin and profits compared to 2022, generated excellent free cash flow and strengthened its balance sheet position, recovering capacity to close to pre-COVID-19 levels in most of its core markets.


“In 2024, we will execute on our strategy, building long-term value into the business.  We will focus on strengthening our core airline businesses and on developing IAG Loyalty and our other asset-light growth opportunities, and we will do this while operating under a strong financial and sustainability framework.  Our airlines operate in the largest and most attractive markets globally and we will continue to invest in our brands to transform the business, improve the customer experience and support the delivery of sustainable growth and world-class margins.


“I would like to thank all of the teams across the Group for their continued hard work and dedication to delivering our transformation plan.”


IAG's Full Year 2023 Operating Results by Airline - Courtesy IAG


During 2023, IAG took delivery of 34 aircraft, 32 of which were new generation and feature the latest onboard seat offerings.  Currently, 68 percent of British Airways' Heathrow-based long-haul fleet features the carrier’s Club Suite product.  For 2024, British Airways will focus on their Boeing 787 Dreamliner fleet, while Iberia is enhancing the guest experience with their new Airbus A350 fleet.  Iberia is also retrofitting their Airbus A330 fleet with new cabins, while their A320 Family fleet will feature the new ‘L’ overhead bins.  In 2023, IAG also converted 10 A320neo options to firm orders for delivery in 2028 as replacement aircraft for their short-haul fleet.  The company also announced a new order for six Boeing 787-10 Dreamliners, which will be delivered to British Airways in 2025 and 2026, as well as an order for one Airbus A350-900 for Iberia.


IAG's 2023 Aircraft Deliveries, and Future Aircraft Deliveries - Courtesy IAG

IAG Loyalty reported a record operating profit of £280 million in 2023, up 17 percent versus FY 2022 and 59 percent higher compared to 2019.  The company’s 2023 CAPEX totaled €3.54 billion, down from €3.88 billion in FY 2022 due to the profile of fleet deliveries and pre-delivery payments, partially offset by an increase in IT spending.


The Group’s in-service fleet increased by 24 aircraft in 2023 with 37 aircraft entering service and 13 aircraft retired.  Of the aircraft re-entering service, five had previously been stood down and two were delivered in 2022.  In total, 34 aircraft were delivered in 2023, four of which entered service in early 2024.  Of the delivered aircraft, 10 were for British Airways, 14 for Iberia, six for Vueling, two for Aer Lingus and two for LEVEL, with 28 acquired directly from Airbus and Boeing, and six from aircraft lessors.  At December 31, 2023, IAG’s fleet included a total of 582 aircraft, including 389 short-haul and 193 long-haul aircraft.  


 

Source: IAG




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