British Airwaya Ig profit owner wins the estimates, the plans of the redemption of stakes
Yadarisa Shabong and Joanna lungs
(Reuters) – The owner of British Airwaya IAG reported 27% of the leap of the annual operational profit on Friday, beating market expectations because he suppressed the costs and growth of lucrative transatlantic routes.
His shares jumped 5% to hover close to a five -year maximum of 368 pencils he hit in early February, as IAG also said he planned to buy a section of $ 1 billion in a billion euro (billion dollars).
European airlines as a whole fought last year with spiral costs and delay of delivery.
Ig, who also owns Spanish airplane Iberia and Vueling, said that, however, he was convinced of making margins and returning because the demand for travel remained strong.
“The airline operator is increased by cheaper fuel prices and resistant travelers, as the squeezed consumers are prioritized by trips,” said Julie Palmer, a partner of the Begbies Traynor Business Counseling.
The group has released an adapted operating profit of 4.44 billion euros, above the expectations of an analyst from the company survey by 4.08 billion euros.
“These results emphasize … The effectiveness of our strategy, supported by the successful execution of our transformation program in the group,” said Luis Gallego CEO in a statement.
Contrary to other European air supplies, its shares increased last year because the group benefited from limited delays in delivery, high demand and resistance to fundamental transatlantic routes.
Lufthansa is more exposed to the Tesha Asian market than IAG, where Chinese carriers are able to fly in Russian airspace, making flights shorter and cheaper.
In Air France, the Paris Olympics forced international tourists to avoid the city and residents in France to delay their holidays.
Lufthansa and Air France-KLM reported their year-round results on Thursday.
Uncertainty in delivery
IAG pointed out possible delays from Airbus and Boeing this year, adding that in the future he sought the order for another circle of wide aircraft.
“We need to adjust our capacity because of the situation,” Gallego said at a media call, adding that the group expected 26 aircraft in 2025.
However, supply limitations could ultimately benefit from the results of the airlines, analysts said, and could help Ig further strengthen their extremely strong position over competitors.
“Although the airlines individually want to have new, modern aircraft with higher capacity and higher fuel efficiency, this should be collectively retained by the industry limited supply, the offenses supported and the earnings of high,” Bernstein Alex Irving analyst.
