IAG reported that record-breaking summer demand drives profit

The parent company of British Airways, IAG, reported record third-quarter profits, driven by robust summer travel demand on transatlantic and European routes for leisure travel.

The firm, which also comprises Aer Lingus and Iberia of Spain, declared an operational profit for the time period of €1.75 billion (£1.52 billion). For the entire year, capacity is anticipated to attain 96% of pre-Covid 19 levels.

Due to the lifting of the last travel restrictions and travel levels approaching pre-pandemic levels, airlines have profited from a busy summer. However, the remainder of the year appears to be more difficult due to rising geopolitical challenges, pressures from the cost of living in important countries, and the ongoing restriction of airspace above Ukraine as a result of the Israel-Gaza conflict.

During a media call, Chief Executive Officer Luis Gallego stated, "We're very mindful of the geopolitical and macroeconomic uncertainty, in particular the events happening in the Middle East." "We are meticulously monitoring the situation and we are sticking to our annual forecast."

On the announcement, IAG shares increased by as much as 4.3%. This year, the stock has increased by 17% already.

As it recovers from the catastrophic impacts of the pandemic, which nearly grounded its fleet, IAG has made strides on several fronts. Standard & Poor's awarded the carrier group its investment grade credit rating back. Also, the BA and its pilot worked out a tentative agreement that eliminates the possibility of strike action until 2027.

(Sources: Bloomberg.com)