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British Airways owner reports record profits as air travel soars
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By Nagasunder in UK Business News, posted July 30, 2023
International Airlines Group (IAG), British Airways owner, has reported impressive half-year profits as air travel continues its post-pandemic rebound.
Boosted by higher fares and a strong recovery in leisure travel, IAG recorded operating profits of €1.3bn (£1.1bn).
It’s a significant turnaround from the €446m loss during the same period last year.
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IAG CEO Luis Gallego said the company aimed to restore pre-pandemic demand levels by the end of the year.
Despite the positive outlook, the company remains cautious about potential uncertainties that could impact fuel prices and consumer confidence in the coming months.
Flight capacity has reached 94 percent of pre-pandemic levels, and fares have increased by approximately 9.5 percent.
It resulted in total revenue of €13.6bn, a remarkable 45 percent increase compared to the previous year.
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The surge in leisure traffic has been a driving force, and premium leisure demand continues to perform strongly.
Mr. Gallego said: "Customer demand remains strong across the group, particularly for leisure travel, with around 80% of passenger revenue for the third quarter already booked.
"And our airlines have put in place plans to support operations during the busy summer period."
The airlines are fully prepared to manage operations during the busy summer period.
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Despite the overall positive performance, IAG said some operations are not meeting their desired levels, affecting customer service.
It said French air traffic control strikes have impacted most airlines, while global supply chain issues have reduced aircraft availability.
The company said British Airways was "particularly affected" because of its "London exposure and complex schedule".
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