International Consolidated Airlines Group (IAG), the parent company of British Airways, Iberia, and Vueling, among others, has announced impressive financial results for the first half of the year. Boosted by strong demand and the exceptional performance of its Spanish business, IAG reported a net profit of €921 million ($1.01 billion) for the six months ended June 30. This is a significant turnaround from the net loss of €654 million incurred in the same period last year.
Robust Financial Performance
IAG's adjusted operating profit, which excludes exceptional and other one-off items, soared to €1.26 billion for the period, compared to a loss of €446 million in the previous year. Additionally, the company reported a remarkable swing to a pretax profit of €1.04 billion, in contrast to a pretax loss of €843 million in the corresponding period.
IAG saw a substantial increase in revenue, amounting to €13.58 billion for the first half of this year, up from €9.35 billion in the previous year. Passenger revenue also witnessed an impressive surge, reaching €11.78 billion compared to €7.60 billion last year.
Encouraging Outlook for Summer
With around 80% of its anticipated revenue for this period already secured through bookings, IAG is optimistic about its summer prospects. The company expects its full-year capacity to operate at approximately 97% of pre-COVID-19 levels, subject to any potential disruptions. However, IAG remains cautious about broader uncertainties such as geopolitical and macroeconomic volatility, which may impact fuel prices and consumer confidence.
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