International Consolidated Airlines Group SA (LON: IAG) is trading up today after reporting its first Q1 profit since 2019.
Analyst reacts to IAG’s quarterly results
IAG said it swung to an operating profit of €9.0 million ($9.9 million) in the first quarter. In comparison, analysts had forecast an adjusted operating loss of €156.6 million. Reacting to its quarterly update, Third Bridge analyst Olly Anibaba said:
Passenger demand for leisure travel remains strong in H1 of 2023 and we’re in for another busy summer. While business travel is recovering more slowly, surge in premium leisure could help offset some of the losses.
He agreed, though, that the air traffic controller strikes, just like all airlines, will be a nuisance for International Consolidated Airlines Group.
Year-to-date, IAG share price is up more than 15% at writing.
Iberia is getting a new CEO
Also on Friday, Javier Sanchez-Prieto – the Chief Executive of Iberia confirmed plans of stepping down to explore opportunities outside of the airlines space.
He will be replaced by Fernando Candela Perez in July and will remain the Chairman and CEO of Iberia until the end of 2023. Anibaba added:
Iberia sees good opportunities in North and Latin America due to strong dollar. Acquisition of Air Europa improves their competitive positioning against big groups like Air France-KLM and Lufthansa.
Wall Street currently has a consensus “overweight” rating on the IAG share price.
IAG share price up on solid revenue
Other notable figures in IAG’s quarterly report include €5.89 billion of revenue – a whopping 71% increase on a year-over-year basis.
Experts had forecast a slightly lower €5.86 billion in revenue for the recently concluded quarter. In a note obtained by Invezz, Third Bridge’s Olly Anibaba also said:
British Airways is expected to be the best-performing airline within IAG this year, with trans-Atlantic travel driving revenue growth. Reopening of Chinese and Japanese markets bodes well for the airline.
IAG now expects its adjusted operating profit to surpass €2.3 billion in 2023.
The post IAG share price ticks up on first Q1 profit since 2019 appeared first on Invezz.