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Highlights:
International Airlines Group (IAG) reports a 15.4% increase in operating profit for Q3 2024, reaching €2.0 billion.
Total revenues for the period rose by 7.9%, reaching €9.3 billion.
IAG announces a €350 million share repurchase scheme and maintains a positive outlook for the remainder of the year.
International Airlines Group (LSE:IAG) , the parent company of British Airways and Aer Lingus, has reported a strong financial performance for the third quarter of 2024, driven by the effectiveness of its group-wide strategy and transformation efforts. For the three months ending 30 September, IAG recorded an operating profit of €2.0 billion, marking a 15.4% increase compared to the same period last year, while total revenues rose by 7.9% to €9.3 billion.
The company also announced a €350 million share buyback program, reflecting its confidence in ongoing financial strength. IAG’s leadership expects this positive performance to continue throughout the remainder of the year. Notably, fuel costs were reduced by 4.2% year-on-year, thanks to lower average fuel prices and more efficient aircraft deliveries.
Luis Gallego, CEO of IAG, attributed the improved results to the company’s strategic initiatives, noting that the operating profit margin had improved to 21.6%. He also highlighted the group’s commitment to providing sustainable returns for shareholders while managing inflationary pressures through effective cost control.
Demand for air travel remains robust across IAG’s airline brands. British Airways saw a strong performance on its North Atlantic routes, with a 3.9% increase in capacity and a 3.5% rise in revenue. The load factor on these flights rose by 2.2 percentage points to 89.1%, indicating high demand and efficient use of available seats.
However, Aer Lingus faced some challenges, particularly with North Atlantic flights, due to the impact of a pilots’ strike and increased competition at Dublin Airport. Despite these hurdles, IAG’s overall performance reflects its resilience and continued focus on improving operational efficiency, including a 10% improvement in British Airways' punctuality compared to the previous year.
