British Airways profit soars six-fold

March 1, 2024

LONDON (AFP) – British Airways parent IAG announced yesterday that net profit surged six-fold last year, boosted by “strong” demand particularly from leisure travellers as the bounce back from COVID continued.

Profit after taxation jumped to EUR2.7 billion in 2023 from EUR431 million in 2022, the airline conglomerate said in a results statement, adding that revenues leapt by almost a third to EUR29.5 billion.

IAG, which also owns Spanish carrier Iberia, added that its “strong growth” was “underpinned by robust and sustainable demand”.

Operating profit before exceptional items nearly tripled to EUR3.5 billion.

The London-listed aviation giant added that it hired 13,000 new workers last year.

“In 2023, IAG more than doubled its operating margin and profits compared to 2022, generated excellent free cash flow and strengthened its balance sheet position, recovering capacity to close to pre-COVID levels in most of its core markets,” said Chief Executive Luis Gallego.

He added: “Our airlines operate in the largest and most attractive markets globally and we will continue to invest in our brands to transform the business, improve the customer experience and support the delivery of sustainable growth and world-class margins.”

Air France-KLM posts record profits, revenue despite tough end to 2023

March 1, 2024


PARIS (AFP) – Air France-KLM announced yesterday a record net profit of EUR934 million for 2023, despite a tough end to the year marked by operational difficulties and the war in the Middle East.

The Franco-Dutch airline group also reported record revenue of EUR30 billion, while adding that it had returned to positive equity for the first time since 2019.

Its profit result was a little below analysts’ expectations of more than a billion euros, according to forecasts compiled by Factset and Bloomberg.

The results, however, contrast with the nightmare of the pandemic years, which saw the group lose a cumulative EUR10.4 billion in 2020 and 2021, forcing it to carry out two recapitalisations and request help from the French and Dutch governments.

In a statement, the group also announced a solid operating margin of 5.7 per cent for 2023, up 1.2 points on the previous year, which had seen it return to profit.

“In 2023, we delivered on our commitment to strong operational and financial performance,” group Chief Executive Officer Benjamin Smith said in the results statement.

The record results were achieved despite passenger numbers not yet returning to pre-COVID levels.

Air France, KLM and subsidiary Transavia transported a total of 93.6 million passengers last year, up 10.3 million on 2022 but still 10.4 million fewer than in 2019.

At the same time, Air France-KLM continued to deleverage, with its net debt falling from EUR6.33 billion at the end of 2022 to EUR5.04 billion at the end of 2023.

The group also saw its net debt-to-gross operating margin (EBITDA) ratio improve to 1.2 times, down from 1.8 times the previous year, which should make refinancing easier.

In the fourth quarter, however, the group suffered a net loss of EUR256 million, a fall of EUR752 million compared with the equivalent period in 2022. Air France, and especially KLM, suffered from a shortage of spare parts – a recurring problem for the aviation sector since the pandemic and also of qualified labour, which disrupted the availability of certain aircraft on the ground.