BA Owner Profits Soar: A-Level Business In The News

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British Airways owner IAG reported record annual profits of €3.5bn, close to triple 2022's level, boosted by strong travel demand.

IAG's other airlines include Iberia, Vueling and Aer Lingus. Profits surpassed pre-pandemic peaks. Travel demand has surged as the industry recovers post-Covid, with IAG capacity nearing pre-pandemic levels.

Total IAG revenues hit €29.4bn, up from €23bn in 2022, with leisure travel seeing robust demand. Flights are already 92% booked for early 2024, better than 2022, but risks remain from high inflation, rates, costs.

Little impact has been seen so far from the economic sluggishness in the UK, with consumer demand for air travel still very strong.

The IAG boss did not comment on whether airfares will rise this year, leaving it to be "determined by market". IAG is expanding its fleet by investing in 178 new, more efficient and quieter aircraft between 2023-2028.

BA owner sees soaring profits post travel resumption