British Airways owner IAG reported a six-fold surge in net profit in 2023, reaching 2.7 billion euros and a revenue leap of almost a third to 29.5 billion euros, due to strong demand from leisure travelers. The company also nearly tripled its operating profit to 3.5 billion euros and hired 13,000 new workers last year. CEO Luis Gallego expressed optimism for the company’s future growth and margin improvement.
LONDON: British Airways parent IAG announced Thursday that net profit surged six-fold last year, boosted by “strong” demand particularly from leisure travellers as the bounceback from Covid continued.
Profit after taxation jumped to 2.7 billion euros ($2.9 billion) in 2023 from 431 million euros in 2022, the airline conglomerate said in a results statement, adding that revenues leapt by almost a third to 29.5 billion euros.
IAG, which also owns Spanish carrier Iberia, added that its “strong growth” was “underpinned by robust and sustainable demand”.
Operating profit before exceptional items nearly tripled to 3.5 billion euros.
The London-listed aviation giant added that it hired 13,000 new workers last year.
“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 levels in most of its core markets,” said chief executive Luis Gallego.
He added: “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.”
Passenger capacity last year reached 95.7 percent of levels in 2019, or before the Covid pandemic sparked lockdowns, grounded airlines and ravaged demand for air travel.
The company also issued a rosy outlook rooted in “robust” demand, adding that it was 92-percent booked for the first quarter of 2024 and 62-percent booked for the first half, ahead of its position last year.
In a recent announcement, the owner of British Airways revealed remarkable financial growth, with profits soaring six-fold in 2023. This news comes as a testament to the resilience and strategic initiatives employed by the airline amidst challenging times. The surge in profits not only symbolizes a strong recovery for the company but also indicates a promising outlook for the aviation industry as a whole. Such robust performance highlights the determination of British Airways to navigate through turbulent times and emerge stronger than ever. The impressive six-fold increase in profits underscores the company’s agility and adept management. This achievement serves as a beacon of positivity in a landscape dominated by uncertainty, demonstrating that with the right approach and unwavering dedication, success is achievable even in the face of adversity. As the industry continues to chart a course towards recovery, the noteworthy success of British Airways serves as inspiration and offers a glimmer of hope for all stakeholders. With prudent strategies and a steadfast commitment to excellence, the airline has not only weathered the storm but thrived, setting a distinguished example for its peers. It is through such remarkable accomplishments that British Airways not only cements its position as an industry leader but also paves the way for a brighter and more prosperous future for the aviation sector.
Source: ARY NEWS
British Airways owner IAG sees six-fold surge in 2023 profit, driven by strong demand from leisure travelers. Net profit soared to 2.7 billion euros with revenues leaping by almost a third to 29.5 billion euros. Operating profit before exceptional items nearly tripled to 3.5 billion euros, and the company hired 13,000 new workers last year. IAG recovered capacity to close to pre-Covid levels in most core markets, with passenger capacity reaching 95.7 percent of 2019 levels. The outlook is positive, with robust demand and strong booking figures for the first quarter and first half of 2024.
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