17.4 C
Friday, May 24, 2024
HomeBusinessBritish Airways' owner IAG raises profit guidance as capacity reaches 97% of...

British Airways’ owner IAG raises profit guidance as capacity reaches 97% of pre-pandemic levels.

The company reports that demand for international travel is high despite the tightening of family budgets and that lowering fuel prices are also contributing to its improved profit outlook.

The parent company of British Airways has increased its annual operating profit forecast due to an increase in reservations, stating that it expects capacity to reach 97% of the pre-pandemic year in 2019.

IAG, which owns Iberia and Aer Lingus, said that its transatlantic profitability initiatives were succeeding.

The company cited leisure travel as its primary driver, while lower fuel costs boosted its bottom line.

British airways' owner iag raises profit guidance as capacity reaches 97% of pre-pandemic levels.
British airways' owner iag raises profit guidance as capacity reaches 97% of pre-pandemic levels.

It was reported that traffic in Latin America and North America had already surpassed levels seen before the COVID public health emergency devastates international travel.

As foreign flights restarted, the company’s first-quarter revenue rose to €5.9bn (£5.2bn) from €3.4bn (£3bn).

It reported a first-quarter operating profit of €9 million (£7.9 million) before exceptional items. As is typical for the three months, analysts had anticipated losses of approximately €180 million (£157,4 million).

The company expects its yearly profit to exceed the February forecast of €1.8 billion to €2.3 billion.

Such a performance at the highest level would represent a 90% advance over 2022.

It described the summer prognosis as “encouraging.”

In defiance of the impact of the cost of living crisis on family budgets, the update confirms rivals’ claims that demand for vacations abroad remains high.

At the opening bell, the stock market increased by 4%.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, commented on the figures. British Airways owner IAG earned an underlying operational profit for the first time since 2019 in the first quarter.

While not all pandemic headwinds have completely dissipated. IAG is in much better condition overall, as business travel, to which it is highly exposed, remains sluggish.

She added, “Being more long-haul oriented, it has taken IAG a very long time to return to normalcy. But all things considered, normalcy is now back on the agenda.

Continued workforce disputes at major hubs, such as Heathrow, could reduce demand and brand allure if queues and disruptions are worse than anticipated heading into the crucial summer travel season.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

Resolution commemorating 1995 Srebrenica genocide passes UN

Despite the vehement opposition of Bosnian Serbs and Serbia, the United Nations General Assembly has voted to establish an annual day of remembrance for the 1995 Srebrenica genocide.  On Thursday, the resolution, which Rwanda and Germany authored, was approved by 84 ballots and opposed by 19, with 68 abstentions. It designates July 11 as the International Day of Remembrance of the Srebrenica Genocide.

West Ham worry Lucas Paquetá’s career may end if he breaks betting rules

West Ham is deeply concerned about the potential ramifications for Lucas Paquetá's career if he is found guilty of intentionally receiving a booking. The midfielder has been accused by the Football Association of violating betting regulations, a charge that, if proven, could lead to the termination of his career. The allegations against Paquetá, which are of a grave nature, involve him intentionally receiving yellow cards in matches against Leicester, Aston Villa, Leeds, and Bournemouth in 2022 and 2023. The FA, in a statement, has raised suspicions that the Brazil international was directly attempting to influence the progress, conduct, or any other aspect of these matches by intentionally seeking to receive a card from the referee for the improper purpose of affecting the betting market for one or more persons to profit from the booking.

Nigel Farage won’t run in UK to aid US candidacy

The former UKIP Brexiteer has stated that he intends to focus on the US election rather than running in the UK election. However, he will continue to assist the Reform UK campaign.  Nigel Farage has declared that he will not be reentering British politics following the announcement of a general election.

Vennells told not to make Post Office top page news

The Post Office withdrew a comprehensive assessment of sub-postmasters' convictions due to concerns that it would generate "front page news."  In 2013, Paula Vennells, the former head of the Post Office, proposed that convictions dating back a decade could be examined.  However, it was disclosed at the inquiry into the Horizon IT scandal on Thursday that ex-Post Office media chief Mark Davies informed Ms. Vennells that it would "fuel the story and turn it into something bigger than it is" in an email.

Recent Comments