The International Consolidated Airlines Group (IAG) has reported a second quarter net profit of €133 million and a first half net loss of €654 million or (€0.132) per basic share. The Group’s H1 Revenue increased to €9.4 billion, compared to €2.2 billion in H1 2021.
On Friday (July 29, 2022). The International Consolidated Airlines Group (IAG) reported their second quarter and first half (H1) financial results for the period ending June 30, 2022. The Group reported a second quarter net profit of €133 million, their first profit since the onset of the global Covid-19 pandemic, on quarterly revenue of €5.9 billion, up from €1.24 billion in Q2 2021. For the first half of the year, IAG reported a net loss of €654 million or (€0.132) per basic share on a revenue increase to €9.4 billion, up from €2.2 billion during H1 2021. At June 30, 2022, the company had total liquidity of approximately €13.5 billion, comprised of €9.2 billion in cash, and committed and undrawn general and aircraft financing facilities of €4.3 billion, including a €200 million loan facility for Aer Lingus from the Ireland Strategic Investment Fund. The company closed the first half of the year with net debt of approximately €10.98 billion, down €688 million from December 31, 2021.
In Friday’s announcement, IAG’s Chief Executive Officer, Luis Gallego, said,
“In the second quarter we returned to profit for the first time since the start of the pandemic following a strong recovery in demand across all our airlines. This result supports our outlook for a full year operating profit. Our performance reflected a significant increase in capacity, load factor and yield compared to the first quarter. Premium leisure remains strong while business travel continues a steady recovery in all airlines. Iberia and Vueling were the best performing carriers within the Group. The Spanish domestic market and routes to Latin America continued to lead the recovery with demand exceeding 2019 levels last month.
"Forward bookings show sustained strength and North Atlantic demand continues to grow following the lifting of the US COVID testing requirements in June. Although bookings into the fourth quarter are seasonally low at this time of year, we are seeing no signs of any weakness in demand. Our industry continues to face historic challenges due to the unprecedented scaling up in operations, especially in the UK where the operational challenges of Heathrow airport have been acute. Our airline teams remain focused on enhancing operational resilience and improving customer experience. I would like to thank those customers affected for their loyalty and patience and our colleagues for their hard work and commitment. We will continue working with the industry to address these issues as aviation emerges from its biggest crisis ever.
“In line with our net zero commitment by 2050, we have announced the addition of 50 new Boeing 737s and 59 Airbus A320 Neo family aircraft subject to shareholder approval. These modern, fuel-efficient planes will see us over 60 per cent through our short-haul fleet replacement by 2028. As we build back operational resilience, our strong portfolio of brands, ability to deliver efficiencies through our Group scale, strong capital discipline and our leadership position in sustainability will generate long term shareholder value.”
IAG's Financila results for the Second Quarter and First Half ot the Year for 2022 - Courtesy IAG
On May 19, 2022, the Group announced an order for 25 Boeing 737-8200s and 25 Boeing 737-10 MAX airplanes. The aircraft are expected to be delivered between 2023 and 2027, and will be used as part of the Group’s short and medium-haul fleet renewal. On June 30th, IAG also announced the conversion of 22 Airbus A320neo Family options into firm orders for 17 A320neos and five A321neos, which will be used to replace A320ceo Family aircraft in the Group’s short-haul fleet. Earlier this week, the company further announced the conversion of 12 Airbus A320neo Family options into firm orders, plus an additional order for 25 A320neo Family aircraft and options to purchase 50 more. These aircraft will also be used to replace aging A320ceo aircraft in the Group’s fleet, and are scheduled for delivery between 2025 and 2028. All fleet orders are subject to approval by IAG shareholders.
Source: IAG