British Airways Parent Surges on Summer Earnings Beat
Bloomberg
Published Oct 13, 2022 08:16AM ET
Updated Oct 13, 2022 08:36AM ET
British Airways Parent Surges on Summer Earnings Beat
(Bloomberg) -- British Airways parent IAG (LON:ICAG) SA surged after saying earnings for the peak summer quarter exceeded analyst estimates and that there are no signs of waning demand despite industry concerns about a slowdown.
The stock jumped 9.8% after the London-based group said it expects to report an operating profit of about €1.2 billion ($1.17 billion) for the quarter through September, spurred by a bumper holiday season. That far exceeds the €814 million company-compiled consensus for the period.
“Trading during the third quarter has been better than expected due to passenger revenue strength,” IAG said. “Forward bookings remain at expected levels for the time of year, with no indication of weakness, and accordingly our fourth-quarter expectations remain unchanged as of today.”
As pent-up demand for travel fades following the removal of Covid curbs there’s been growing speculation that rising living costs in Europe could begin to put people off flying over winter and into next summer. EasyJet Plc, the region’s second-biggest discount carrier, also said Thursday that its bookings remain strong going into the current quarter.
Shares of IAG were trading 8.5% higher as of 1:04 p.m. in the UK capital, paring declines this year to 23%.
IAG, which also owns Spain’s Iberia and Aer Lingus of Ireland, will report full earnings on Oct. 28, according to the unscheduled update.
Read: EasyJet Says Bookings Holding Up as Summer Sales Narrow Loss
(Updates with analyst estimate in second paragraph)
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Written By: Bloomberg
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