European airline group IAG rounded off 2024 with another profitable quarter, as the British Airways and Iberia owner continues to see positive returns from all of its business units.
Reporting its fourth quarter and full-year results on 28 February, IAG said its October-December operating profit came in 49% ahead of analyst predictions at €961 million ($1 billion), capping a strong year for the business.
“This is not the peak, but the start of a more sustained level of profits,” said chief executive Luis Gallego during an earnings call.
He cites IAG’s strong position at its hubs, the performances of transatlantic and intra-Europe markets in particular, and its continuing transformation effort as key factors behind its recent performance – and reasons for the group’s optimism about its earnings potential in 2025 and beyond.
Indeed, IAG’s full-year operating margin of 13.8% and return on capital of 17.3% would be an “exceptional performance for any business”, Gallego says.
Within that result, Aer Lingus achieved an operating margin of 8.6%, despite the impact of strike action during 2024, while BA achieved a margin of 14.2%, Iberia 13.6%, Vueling 12.3% and IAG Loyalty 17.3%.
IAG saw its full-year net profit tick up slightly to €2.7 billion ($2.8 billion), while its operating profit was 27% higher at €4.4 billion. It achieved those figures on revenue some 9% higher at €32.1 billion.
A passenger unit revenue rise of 3.1% outpaced a 0.3% rise in unit costs (or a 2.6% rise when fuel is excluded).
IAG’s fourth-quarter operating profit nearly doubled year on year to €961 million, on revenue that was up 11% at €8 billion. Its net profit fell, however, by 22% to €392 million.
