IAG reports positive operating profits and an increase in passenger transportation.

International Airlines Group (IAG), the consortium that includes renowned airlines such as British Airways, Iberia, Vueling, Aer Lingus, and Level, recently released its financial results for the first half of 2024, reporting a net profit of €905 million. Although this figure represents a decrease of 1.7% compared to the €921 million reported for the same period last year, the group achieved a significant increase in its revenues, which grew by 8.4% to reach €14,724 million. Operating profit also increased, reaching €1,309 million, a 3.9% rise compared to the first half of 2023. This growth in revenue and operating results is largely attributed to strong demand in the key markets where IAG operates. Throughout the first six months of the year, the group transported 58.23 million passengers, representing a 7.2% increase compared to the same period last year. Passenger transport growth was particularly notable in the Asia-Pacific markets, where the airline experienced a remarkable increase of 25.2%, and in Latin America and the Caribbean, which grew by 15.6%. Domestic flights in the UK and Spain also showed positive growth, moving 14.4 million travelers, a 4.4% increase from the previous year. British Airways, the consortium's main airline, reported transporting 22.1 million passengers, an increase of 7.8%. Iberia, on the other hand, transported 12.65 million people, representing a 10.3% increase, while Vueling saw its passenger numbers rise to 17.95 million, with a growth of 5.9%. Despite the decline in net profit, all airlines under the IAG umbrella managed to close the semester with positive operating results before exceptional items. British Airways reported an operating result of €555 million, ten times more than in the first half of 2023, while Iberia reached €362 million, recovering from a loss of €10 million the previous year. Vueling and Aer Lingus also contributed profits, reflecting a more optimistic outlook for the group. Unit costs, excluding fuel, increased by 1.8%, attributed to wage increases and investments in the business. However, this increase was partially offset by a reduction in costs related to operational disruptions, a key aspect of the post-pandemic recovery in the airline sector. As for fuel expenses, there was a recorded increase of 7.4%, a factor that continues to impact profit margins in the industry. A notable aspect of the results is the significant reduction in IAG's net debt, which at the end of the first half stood at €6,417 million, a considerable decrease from €9,245 million at the end of the previous fiscal year. This decline in debt indicates the group's financial recovery, which also boasts strong liquidity of €13,168 million, up from €11,624 million at the end of 2023. Looking ahead, IAG projects to maintain strong demand in its key markets and anticipates an average capacity increase of 7% throughout the year. For Iberia, this capacity increase will be as much as 14%, suggesting renewed optimism in the growth of air operations, especially in the context of broader economic recovery. Luis Gallego, the group’s CEO, described these results as a testament to the success of the strategy adopted by IAG. Additionally, he announced the resumption of shareholder remuneration, highlighting the group’s confidence in its financial stability and the continued growth of the airline sector. In summary, although net profit has decreased, IAG demonstrates a robust recovery with an increase in revenue, growth in passenger transport, and a significant reduction in debt. These solid results suggest that the group is well-positioned to face market challenges and capitalize on opportunities arising in the current environment.