IAG shares it the highest level since mid-2021 on Friday after the FTSE 100 airline company said they were ‘well-positioned for the summer’ after revenue jumped in the 1st quarter.
Given the terms ‘good demand’, ‘high demand’, ‘robust demand, and ‘strong demand’ are littered throughout IAG’s trading statement released, on Friday, one would assume they are fairly positive on sales performance this year.
“Looking ahead, the company anticipates an exceptional summer season, potentially setting new records for demand,” said Javier Molina, Senior Analyst at investment platform eToro.
Revenue for the first quarter of 2024 grew to €6,429m from €5,889m in the same period last year. Passenger growth of 7% and a 4.4% increase in passenger revenue per available seat kilometre were the core drivers of higher revenue.
Operating profit jumped to €68m from €9m.
“It’s pleasing to see positive progress on all key financial metrics,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“Lower fuel costs were complemented by a greater mix of more modern efficient aircraft, and operational costs are also being tightly managed. Debt keeps on coming down so it’s worth keeping an eye on dividend policy if strong trading continues.
“There was little in the way of forward guidance but the tone was confident, with IAG well positioned for the summer, against a backdrop of continuing high demand for leisure travel.”
