The IAG group earned 431 million euros in 2022, returning to profit after two years of a pandemic in which the company lost 9,856 million. It is, therefore, the first positive income statement after Covid, with benefits in all its airlines: Iberia, the one with the highest margin, Vueling, British Airways and Aer Lingus. The company led by Luis Gallego has presented results today after announcing this Thursday that it will buy Air Europa for 500 million in an estimated period of a year and a half, if the operation receives the go-ahead from the competition authorities.
IAG achieved revenues of 23,066 million last year, which means multiplying by 2.5 those achieved in 2021, when it entered 8,455 million. The increase in fares and customer tickets stands out as a consequence of the recovery of air traffic. The group entered 19,458 million in this concept, compared to 5,830 the previous year.
Despite this recovery in revenue, the airline group had to face increased costs in various aspects. Expenditure on fuel and emission rights tripled, reaching this item to 6,120 million. And the landing and emission rates also doubled, reaching 1,890 million.
As for brands, Iberia recovers profits after the pandemic. The airline run by Javier Sánchez-Prieto earns 382 million before exceptional items, practically doubling its revenue from passengers. Vueling, for its part, also returns to profit with a positive 187 million before exceptional items, compared to the losses registered in previous years. Iberia and Vueling "starred in the greatest return to profits compared to 2019 as a result of the solid demand," admits IAG in the information sent this Friday to the National Securities Market Commission (CNMV).
IAG's net debt was reduced by 1,282 million, reaching 10,385 million euros as of December 31, 2022. This decrease was mainly due to the recovery of profitability, explains the group.
This return to profits does not yet allow IAG to return to dividends. For the group led by Luis Gallego, the remuneration to shareholders will depend in the future on "the liquidity needs and the distributable reserves of the main operating companies of the group."
"2022 was a year of strong recovery, driven by sustained holiday demand and the reopening of markets. Year-to-date, we continue to see strong booking developments, while mindful of global macroeconomic uncertainties. We are transforming our businesses with the aim of returning to pre-Covid profit levels in the coming years, through major initiatives to improve customer experience and operational performance," said the IAG CEO.
The group of airlines expects to be close to the volume of flights from the year prior to the pandemic in 2023 and expects that the profit from operations before exceptional items for the full year will range between 1,800 and 2,300 million euros. "However, we are mindful of the uncertainty in the macro environment and in inflation in fuel and other costs," IAG concludes.
The leadership of IAG believes that the purchase of Air Europa, if it ends up materializing, will be positive for the user: "This is an acquisition that has a lot of advantages for consumers," said the CEO of Iberia, Javier Sánchez-Prieto. "The strategy has to be aimed at continuing the conversation we had with the European Commission and trying to convince them that it is positive for consumers and for the Madrid hub. Also for companies, but emphasis must be placed on the first two points," he added.
"Regarding the competition scheme, a new phase begins. It is a different approach, there is a lot of work done, we had a remedy scheme (assignments to the competition) but we are open to new options," said Luis Gallego, CEO of IAG.
