BA owner IAG says demand holding strong after summer boost By Stocksak

© Stocksak. FILEPHOTO: British Airways tail fins at Heathrow Airport in London (Britain), May 17, 2021. REUTERS/John Sibley/File Photograph

By Paul Sandle

LONDON (Stocksak), British Airways owner IAG, (LON:) stated that demand for its flights has not diminished despite a cap at London Heathrow and lingering COVID limitations in Asia.

Chief Executive Luis Gallego claimed that all IAG’s airlines, which include Iberia (Aer Lingus) and Vueling, were “significantly profitable” during the quarter and that recovery looks set to continue.

The group’s ability will rise to 87% percent 2019 levels in the fourth trimester, up from 81% during the third quarter.

“We continue to have strong bookings,” he stated on Friday. “Leisure demand remains particularly strong, while business travel continues to recover steadily.”

He stated that demand was strong but that the group was aware of the uncertainty surrounding the economic outlook and ongoing pressures on households.

IAG reported third quarter adjusted operating profit of 1.21 Billion Euros ($1.21 Billion) on revenue of 7.33 Billion Euros, 0.9% more than in 2019.

It expected to make an adjusted operating profit of around 1.1 billion euros in the year, excluding the 467 million-euro losses it suffered in the first six months.

IAG shares have risen 19% since Oct. 13 when the group stated that its third-quarter profit would surpass market expectations. However, shares of IAG were trading at 1.3% in early Friday deals.

IAG reported that premium leisure revenue had fully recovered by summer, while the business channel was at 75% of its level in 2019.

($1 = 1.0028 euros)

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