Summary
- International Airlines Group (IAG) has reported record Q3 profits, attributing the expansion to strong leisure demand.
- IAG’s capability has increased by 17.6%, bringing it near pre-pandemic levels, with the delivery of 20 latest aircraft playing a key role.
- Individual performance highlights include two-digit revenue growth for Aer Lingus and British Airways, and a record-high Q3 profit for Vueling.
With an increasing number of firms from the world of business aviation now able to share their third-quarter results with the world, the International Airlines Group has been capable of post a really strong set of figures. Indeed, its Q3 profits hit record levels this yr, with the group crediting strong leisure demand for this growth.
By the numbers
While the last 12 months have represented a period of recovery for a lot of key players within the airline industry, it’s value noting that IAG delivered a robust performance within the third quarter of 2022. Still, despite its operating profit being a powerful €1.218 billion in Q3 last yr, this grew by a powerful 43.3% to a record high of €1.745 billion ($1.842 billion) between July and September 2023.
This represented a record high when it comes to Q3 profits at IAG, underlining the strength of its ongoing post-COVID recovery. Its operating margin also rose from 16.6% in Q3 of 2022 to twenty.2% this time around. Meanwhile, its margin for the yr thus far (January-September) sits at 13.5%, with an operating profit of €3.005 billion.
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A driver behind IAG’s resurgence has been its ability to extend its capability (available seat kilometers), which grew by 17.6% year-on-year. This brings it tantalizingly near the capability levels achieved pre-pandemic, at 95.6% of 2019’s figures. The delivery of 20 latest aircraft has played a key role on this regard.
Leisure demand is pushing IAG forward
Particularly, IAG has highlighted leisure travel as a catalyst for its highly profitable third quarter. The group experienced “,” causing passenger unit revenue to extend by an element of two.2% year-on-year. Reflecting on the strong results, IAG CEO Luis Gallego stated that:
“Throughout the third quarter, we saw sustained strong demand across all our routes, specifically the North and South Atlantic and in all leisure destinations around Europe. We proceed to develop our hubs of Barcelona, Dublin, London, and Madrid, supported by our fleet deliveries and future orders.”
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By way of these orders, IAG notes that this yr has seen it add “” to its order book. The acquisition of those modern widebody twinjets aligns with its strategy goals for network growth, in addition to underlining its commitment to sustainability.
Individual airline highlights
In addition to detailing its group performance, IAG also took the chance to the touch upon some notable achievements on a person level for every of its airlines. For instance, each Aer Lingus and British Airways saw two-digit revenue growth, with their totals rising by 16% and 20% respectively. Meanwhile, Vueling’s Q3 profit was also a record high, at €282 million with a margin of 26.1%.
What do you make of IAG’s Q3 results? Did you travel on any of its airlines through the last quarter? Tell us your thoughts and experiences within the comment section.