Why the IAG Profit Machine Still Managed to Disappoint
Photo Credit: A British Airways Boeing 787-9 Dreamliner. Vincenzo Pace
Skift Take
IAG’s steady-but-unspectacular quarter was enough to spook the market. The European airline group remains hugely profitable, but Friday’s numbers left many industry-watchers wanting (even) more.
International Airlines Group (IAG) reported solid third-quarter results on Friday, but they failed to meet the market’s high expectations. This sent shares lower as investors digested signs of softer demand on key routes.
The owner of British Airways, Iberia, and Aer Lingus posted a net profit of €1.40 billion for the three months to September, slightly below last year’s €1.44 billion. Revenue was unchanged, while operating profit before exceptional items rose 2% – just shy of consensus forecasts.
Put simply, Q3 was a mixed bag for the European aviation supergroup. Despite capacity growth, passenger numbers slipped 0.5% to 34.6 million. Load factors – the average passenger occupancy of a flight – slipp
