IAG: operating margin more than doubles in 2023

(CercleFinance.com) - IAG announced on Thursday that it would more than double its operating margin in 2023, thanks to the recovery in the airline sector, which is enabling it to post capacity levels close to those of 2019 in most of its markets.


The airline, which owns British Airways and Iberia, posted operating income before exceptional items of E3.5bn last year, compared with E1.25bn in 2022.

Its operating margin thus reached 11.9%, compared with 5.4% in 2002.

The group adds that it generated a solid free cash flow (FCF) of E1.3bn over the year, and has a "positive" outlook for 2024.

IAG is confident of generating significant FCF, and is committed to offering "sustained" value creation and redistribution to its shareholders.

Its booking rate for the first quarter already stands at 92% and 62% for the first half as a whole, levels above those that characterized the same periods in 2023.

Despite these good figures, IAG shares were up by just 0.6% on Thursday morning on the London Stock Exchange. The share have risen over 10% in the last four months.


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