(CercleFinance.com) – The air carrier IAG announced on Friday that it had had a ‘good start to the year’ thanks to strong demand and declared itself ‘well positioned’ for the summer season.
The owner, among others, of the companies Aer Lingus, British Airways and Iberia generated an operating profit of 68 million euros excluding exceptionals in the first quarter, compared with a profit of only nine million a year earlier.
This performance turns out to be significantly higher than the 48 million euros expected by analysts according to a consensus provided by the group.
At the same time, its loss after tax was reduced to four million euros, after a shortfall of 87 million euros a year earlier.
Turnover totaled 6.4 billion euros, compared to 5.9 billion euros over the same period last year, driven by an 8.6% increase in its traffic, with nearly 26.4 million passengers transported.
Unit revenue per passenger increased by 4.4% while fuel expenses fell by 4.9% thanks to the effectiveness of its oil hedging strategy.
Without providing numerical forecasts, IAG said it was ‘well positioned’ for the crucial summer season, while adding that it expected favorable and sustainable demand in the long term for the airline sector.
‘We see the potential for good surprises compared to the estimates established by the consensus for 2024’, reacted this morning the RBC analysts, who display an ‘outperform’ opinion on the stock.
Following this publication, IAG shares rose by around 0.8% on Friday morning on the London Stock Exchange. The stock has now gained nearly 20% since the start of the year.
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