10th May 2024 09:28
(Alliance News) - British Airways-owner International Consolidated Airlines Group SA on Friday said it is well positioned for the key summer season as it reported a narrowed first-quarter loss.
Shares in IAG rose 1.0% to 184.70 pence in London early Friday.
The Madrid-based airline operator, which also owns Iberia, Vueling and Aer Lingus, said its first quarter pretax loss narrowed to EUR87 million from EUR121 million a year prior.
Operating profit multiplied to EUR68 million from EUR9 million, as total revenue rose 9.2% to EUR6.43 billion from EUR5.89 billion last year.
Net debt of EUR7.44 billion was down from EUR9.25 billion a year ago.
Chief Executive Luis Gallego said: "Our transformation initiatives and increased demand, including over the Easter holidays, have delivered another very good set of results with improvements to both revenue and operating profit.
"We are well-positioned for the summer. The high demand for travel is a continuing trend."
IAG said passenger revenue per available seat kilometre for the first quarter was 4.4% higher than a year ago, reflecting the benefit of the timing of Easter and a continued strong leisure traffic recovery, with business traffic recovering more slowly.
Non-fuel unit costs increased by 3.7% from a year prior, driven by investments in the business and the impact of wage settlements agreed during the course of the year.
Fuel unit cost fell 4.9% from a year ago reflecting lower average fuel prices more efficient aircraft deliveries, IAG said.
IAG reported a 7.0% rise in passenger capacity growth in the quarter from last year.
This was led by a 14% rise in average seat kilometres in Latin America & Caribbean, and a 9.0% increase in Europe. Growth in North Atlantic ASKs was a more modest 0.6%.
Capacity to the Africa, Middle East & South Asia region increased by 0.4% but revenue declined by 3.4%. IAG said the conflict in the Middle East has impacted flying by most of its airlines to the region.
Looking ahead, IAG expects "positive long-term, sustainable demand for travel."
Its full year capacity plans remain for around 7% growth in average seat kilometres, with investment in core markets. It continues to expect non-fuel unit costs to increase slightly for the year reflecting ongoing investments in the business.
IAG expects to generate significant free cash flow and to maintain a strong balance sheet, and remains committed to sustainable shareholder value creation and cash returns.
By Jeremy Cutler, Alliance News reporter
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