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BA owner IAG more than double profits despite final quarter coming in short

Published 29/02/2024, 08:20
Updated 29/02/2024, 08:20
© Reuters.  BA owner IAG more than double profits despite final quarter coming in short

Proactive Investors - British Airways owner International Consolidated Airlines Group (LON:ICAG) reported significant growth in underlying profits for the past year, but the fourth quarter was just short of City analyst estimates.

For the full 2023 calendar year, operating profit before exceptional items came in at €3.5 billion, more than double the previous year and beating the €3.25 billion made in pre-pandemic 2019.

Fourth-quarter operating profit of €502 million were up from €477 million a year ago, but slightly short of the €504 million that analysts forecast.

Free cash flow generation was €1.3 billion enabling net debt to be trimmed to €9.3 billion from €10.4 billion.

A positive outlook for 2024 was declared, with the group expecting to deliver “significant” free cash flow generation.

While dividends remain off the tray-table for now, IAG directors said they are “committed to sustainable shareholder value creation and cash returns”.

Demand continues to be “robust”, especially leisure travel, with the group currently 92% booked for the first quarter of 2024 and 62% booked for the first, ahead of the position at this time last year.

Read more on Proactive Investors UK


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