IAG Reports Strong Q3 Profits and Positive Outlook for 2024
International Airlines Group (IAG), the parent company of British Airways and Iberia, has posted impressive third-quarter pre-tax profits of over €2 billion ($2.1 billion), marking a 15.4% increase compared to the same period in 2023. The results reflect the ongoing strength of IAG’s financial performance and its successful strategic execution.
On November 8, 2024, IAG confirmed that it expects this strong financial performance to continue through the end of the year. Luis Gallego, CEO of IAG, shared his optimism, stating, “We achieved a very strong financial performance in Q3 2024, with a 15.4% increase in operating profit compared to the same period last year and improving our margin to 21.6%. This is due to the effectiveness of our strategy and Group-wide transformation.”
Strong Revenue Growth Across IAG’s Airlines
IAG, which also owns Vueling, Aer Lingus, LEVEL, IAG Loyalty, and IAG Cargo, reported a 7.9% increase in revenues, reaching €9.33 billion ($10.1 billion) for the quarter. The growth was driven primarily by higher passenger revenue, improved Cargo revenue, and a boost in Maintenance, Repair and Overhaul (MRO) revenue at Iberia.
The North Atlantic region was identified as a key area of strength for the group, with a 3.9% increase in capacity and a 3.5% rise in passenger unit revenue over the quarter. British Airways performed particularly well in this market, with strong unit revenue, while Aer Lingus faced some challenges. The Irish airline was impacted by a pilots’ strike and increased competition on its Dublin routes, which led to a decline in performance.
IAG also reported strong demand and revenue performance across all of its short-haul airlines in Europe, signaling continued recovery and stability in the European market.
Fleet Expansion and Capacity Growth
Looking ahead, IAG is preparing for further growth with the delivery of four new aircraft in the fourth quarter. The company also anticipates a 5% increase in capacity in the final quarter of 2024, with full-year capacity expected to rise by around 6%. This fleet expansion is part of IAG’s broader strategy to continue expanding its global network and meet the growing demand for air travel.
Strategic Outlook for IAG
IAG’s leadership continues to focus on optimizing its operations and improving customer service across its diverse airline portfolio. Gallego emphasized the strength of the group’s transformation efforts, which have helped position IAG for sustained growth. “We are confident in the strength of our financial position and the effectiveness of our ongoing strategy, which will help us continue delivering value for our shareholders and customers,” he said.
As IAG continues to strengthen its position in the global aviation market, the group remains committed to its expansion plans, ensuring a strong outlook for the remainder of 2024 and beyond.
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