IAG continues recovery as anticipates large quarterly profit increase

(Alliance News) - International Consolidated Airlines Group SA on Thursday said its trading in ...

Alliance News 13 October, 2022 | 11:57AM
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(Alliance News) - International Consolidated Airlines Group SA on Thursday said its trading in the third quarter was "better than expected".

Shares in the FTSE 100-listed airline and parent of British Airway were trading 8.3% higher at 109.07 pence each on Thursday afternoon.

The company said it now expects its pre-exceptional operating profit for the third quarter to be around EUR1.2 billion due to passenger revenue strength.

Forward bookings remain at expected levels for the time of year, the company noted. As a result, its fourth quarter expectations remain unchanged.

In its second quarter results, IAG swung to a profit as it benefitted from the recovery of the tourism business after the Covid-19 pandemic. Operating profit before exceptional items was EUR467 million in the first half, swung from a EUR2.18 billion loss a year before.

However, for the half year it remained loss making.

Earlier Thursday, easyJet PLC said it will post a narrowed loss for the full year. easyJet explained that the loss in the recent year includes a GBP64 million FX loss from balance sheet revaluations and incremental disruption costs of GBP75 million, mainly from operational issues experienced across the industry in its third quarter.

It pointed out that its easyJet Holidays division generated GBP35 million profit.

By Chris Dorrell; chrisdorrell@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
International Consolidated Airlines Group SA 182.30 GBX -0.98 -

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