Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

British Airways owner expecting record year on post-pandemic boom

Published 23/02/2024, 12:18
Updated 23/02/2024, 12:41
© Reuters.  British Airways owner expecting record year on post-pandemic boom

Proactive Investors - British Airways owner International Consolidated Airlines Group (LON:ICAG) will offer up full-year results on Thursday, 29 February.

Given budget rivals easyJet (LON:EZJ), Ryanair (LON:0RYA) and Wizz Air (LON:WIZZ) have enjoyed recent gains on a faster post-pandemic recovery within the short-haul sector, the update will offer an insight into how premium, longer-distance carriers are faring in comparison.

“It is tempting to think that investors are frightened that IAG is losing out in the market share stakes to the low-cost carriers, at least in short-haul,” AJ Bell analysts noted.

“The company has also been dogged by labour unrest and geopolitical uncertainty, while the UK’s gradual slide into recession may not have helped sentiment either, given how sensitive airline travel can be to the economic cycle.”

That said, analysts still expect the company to have enjoyed a record year after passengers returned en masse for holidays, which were previously made impossible by Covid-19.

Total sales for 2023 are expected to hit a record €29.4 billion, marking a 27% year-on-year increase, AJ Bell said.

‌Underlying operating profit is anticipated to reach a record €3.5 billion meanwhile, exceeding the previous peak in 2018.

Investors will be keen to hear updates on capacity and load factors for both 2023 and the year ahead, AJ Bell added.

Capacity had sat at 87% of pre-pandemic levels by late 2022, with load factors having come in at 81.8%.

Costs, such as fuel, and revenue per seat will also be of interest, analysts noted.

IAG shares have fallen 8.5% over the year and sat at 153.35p on Thursday.

Read more on Proactive Investors UK


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.