IAG has reported a third quarter net profit of €853 million on a year-over-three increase in revenue of 0.9 percent to €7.3 billion. At September 30, 2022, the Group had €13.5 billion in total liquidity, including cash and undrawn financing and revolving credit facilities.
On Friday (October 28, 2022), the International Consolidated Airlines Group (IAG) reported their third quarter financial results for the period ending September 30, 2022. The Group reported a third quarter operating profit of €1.2 billion and a net profit of €853 million on a year-over-three increase in revenue of 0.9 percent to €7.3 billion. IAG’s passenger unit revenue for the third quarter increased 21.9 percent versus Q3 2019, while non-fuel unit costs increased year-over-three by 25.5, primarily driven by lower capacity, adverse foreign exchange rates and inflation. The Group’s third quarter capacity was 81.1 percent compared to the same period in 2019.
By the end of the third quarter, IAG’s premium leisure revenue fully recovered to 2019 levels, while business travel recovered to approximately 75 percent of pre-pandemic levels. At September 30, 2022, the Group had total liquidity of €13.5 billion, including €9.26 billion in cash, €4.2 billion in committed and undrawn general and aircraft financing facilities, and revolving credit facility availability of €1.76 billion. IAG’s total net debt at September 30, 2022 was down $609 million from December 31, 2022 to approximately €11.1 billion.
In Thursday’s announcement, IAG’s Chief Executive Officer, Luis Gallego, said,
“We achieved another strong performance in the third quarter, with an operating profit of €1.2 billion and liquidity of over €13 billion. All our airlines were significantly profitable and we are continuing to see strong passenger demand, while capacity and load factors recover. Leisure demand is particularly healthy and leisure revenue has recovered to pre-pandemic levels. Business travel continues to recover steadily. I would like to thank our employees across the Group for their hard work which has been key to our recovery. This strong trading performance allows us to continue to invest in our customers, our people and our industry-leading sustainability agenda.
“We're pleased that our shareholders have recently approved the acquisition of 87 new short-haul aircraft that will bring us long-term cost savings, lower carbon emissions as well as an improved customer experience. While demand remains strong, we are conscious of the uncertainties in the economic outlook and the ongoing pressures on households. Against this backdrop, we are focused on adapting our operations to meet demand, strengthening our balance sheet by re-building our profitability and cashflows and capitalising on our high level of liquidity. This will allow us to allocate capital while investing in a disciplined way in our service and our people, to build capacity and enable future growth.
“As we build back our operational resilience, we are confident in our strengths as a Group: first, a portfolio of leading airline brands; second, leading positions in our key markets and hubs; and third, the flexibility afforded by IAG to drive operational efficiency and innovation. These will enable us to return to pre-COVID levels of profit and generate long-term value for all our stakeholders.”
IAG's Third Quarter 2022 Financial Results - Courtesy IAG
On August 16, 2022, IAG exercised their option to exchange the Group’s €100 million seven-year unsecured convertible loan to Globalia for a 20 percent stake in Air Europa. Additionally, on October 26, 2022, IAG’s shareholders approved the purchase of 50 Boeing 737 MAX Family Aircraft and 37 Airbus A320neos. The new airplanes will be delivered between 2023 and 2028 and will replace the Group’s existing A320ceo Family aircraft.
The International Consolidated Airlines Group (IAG) is one of the world’s leading airline groups and has a combined fleet of 531 aircraft. Pre-pandemic, the Group served 279 destinations, carrying nearly 120 million guests annually. 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: IAG