The Diplomat
Iberia posted an operating profit of 307 million euros in the second quarter of 2023, the highest quarterly profit in the company’s history and more than three times higher than in the same period last year.
The company highlights the good performance of all business areas, airlines, handling and maintenance. In the latter two categories, it highlights the fact that, despite inflation, the company has made profits thanks to increased activity and “solid productivity”, reports Europa Press.
The airline had a turnover of 1,780 million euros during the quarter, an increase of 29% over the previous year, of which 1,331 million came from passenger revenues (+36%), IAG, the holding company to which Iberia belongs along with British Airways, Vueling, Aer Lingus and Level, notified yesterday to the Spanish Securities and Exchange Commission (CNMV).
On the other hand, operating costs amounted to 1,473 million euros, up 14%, among which the item to suppliers, which increased by 22% and reached 716 million euros, stands out.
Between April and June, Iberia carried 5.9 million passengers (+18.8%) and had an occupancy factor of 87.7%, 3.4 percentage points higher than in the same months of 2022, with a 15% increase in capacity and 20% higher demand.
In the first six months of 2023, the airline carried 11.4 million passengers (+29.1%), with an occupancy factor of 86.6%, up 6.1 percentage points.
The group’s other airline, Vueling, posted an operating profit of 160 million euros in the second quarter, quadrupling the figures for the same period last year. Vueling’s revenues increased 26% to 902 million euros, while expenses rose 10% to 742 million euros.
In these three months, Vueling carried 9.7 million passengers (+10.3%), with an occupancy factor of 90.9%, while total passengers in the first half of the year amounted to 16.9 million (32.1%), with an occupancy factor of 90.2% (+8.4 percentage points).
British Airways recorded an operating profit of 514 million euros in the quarter, more than eight times the 60 million euros of the same period last year, with revenues 34% higher at 3,674 million euros.
In terms of passengers, British Airways carried more than 11 million (+22.1%) between April and June, achieving an occupancy factor of 84.6%, up 4.2 percentage points.
Passenger numbers for the first six months of the year increased by 42.8% to 20.5 million, with an occupancy factor of 81.8%, up 5.4 percentage points.
Finally, Aer Lingus increased operating profit sevenfold in the second quarter of 2022 to 121 million euros. The Irish airline carried more than 3 million passengers in the quarter (+20.4%) and more than 5 million in the half year (+37%), achieving occupancy factors of 84.9% (+7.1 p.p.) and 80.8% (+10.5 p.p.), respectively.
IAG Cargo recorded revenues of 603 million euros in the first half of 2023, 28.5% lower than in the same period last year but 8.5% above pre-pandemic levels. Cargo carried, measured in tonne-kilometres transported (TKT), increased by 14.7%.
IAG earns 921 million in the half year
The parent of these airlines, IAG, posted a net profit after tax of 921 million euros in the first half of the year compared to a loss of 654 million euros in the same period last year.
Operating profit reached 1,260 million euros in the first half of the year, also reversing the previous year’s losses. The company’s revenues increased by 45.3% to 13,583 million euros. Meanwhile, expenses increased by 26.2% to 12,323 million euros.
The group’s CEO, Luis Gallego, said that these results are due to the “good performance of all the airlines” and that their intention is to return to pre-pandemic capacity by the end of the year. He also stressed that demand remains strong.
Following the results presentation, the holding company’s share price soared yesterday on the Ibex 35.
