International Airlines Group (IAG) has posted its full-year 2023 results, showing a significant revenue increase at €29.4 billion compared to €23 billion in 2022.
The airline group also noted that operational income almost trebled to €3.5 billion compared to €1.27 billion recorded the previous year.
Operational margin, in turn, has more than doubled to 11.9% from 5.4% the preceding year.
According to the airline group, the increase in profitability has been driven mostly by strong demand, particularly in leisure markets.
Capacity has continued to grow (+22.6%), mostly on core transatlantic markets linking Europe to North and South America, although it is still slightly below 2019 levels.
IAG has managed to bring down non-fuel costs by 4.4%, while fuel costs increased 0.7%. In this regard, IAG expects costs to increase slightly in 2024, as the airlines of the group invest in new capacity to respond to what it sees as strong demand continuing well into the rest of 2024.
IAG also highlighted the strong results of its loyalty products and services which generated €327 million for the group, up 17% from 2022.
However, IAG has not revealed the potential impact of the Air Europa acquisition in its 2024 guidance. The deal is currently under review by the European competition authorities.