Strong Travel Demand Boosts IAG’s Profits

Robust Demand Continues

International Consolidated Airlines Group reported a rise in net profit, surpassing consensus expectations, thanks to sustained strong travel demand. The company expressed confidence in achieving significant free cashflow generation.

Booking Numbers Look Promising

The airline group, known for housing British Airways, Iberia, and Vueling among others, revealed that demand remained robust, especially in leisure travel. Booking numbers for the first quarter stood at 92%, with the first half at 62%, putting it in a better position compared to the previous year.

Capacity Growth and Future Plans

In 2023, capacity growth reached 22.6% compared to 2022, with a focus on the core north and south Atlantic markets. The full-year capacity currently stands at 95.7% of 2019 levels, and the company anticipates a further 7% growth in capacity for 2024.

Rebuilding Long-Haul Capacity

Specifically, British Airways aims to rebuild its pre-Covid-19 long-haul capacity, while Iberia plans to expand efficiently within the lucrative Latin American market.

Strong Balance Sheet and Commitment to Shareholder Value

IAG emphasized its disciplined capital allocation strategy to maintain a robust balance sheet. While no dividend was declared, the company remains dedicated to sustainable shareholder value creation and cash returns.

Business Transformation Leads to Record Profits

The company’s strategic transformation program continues to yield impressive results, with net profit reaching 2.66 billion euros in the latest fiscal year. This marks a significant increase from the previous year’s net profit of EUR431 million. This impressive performance has surpassed market expectations, showing strong growth and profitability.

Financial Highlights

The increase in revenue, driven by a surge in passenger revenue, highlights the company’s resilience and adaptability in a challenging market environment. Operating profit before exceptional items also showed significant improvement, reaching 3.51 billion euros compared to 1.23 billion euros in the previous year.

Future Focus and Strategy

Chief Executive Luis Gallego emphasized the company’s commitment to strengthening its core airline businesses and investing in growth opportunities such as IAG Loyalty. Underpinned by a robust financial and sustainability framework, the company is well-positioned to capitalize on future growth opportunities.

As the company continues on its transformation journey, maintaining a focus on operational excellence and strategic investments will be key priorities to drive long-term success.


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.