IAG’s revenue landed flat at €9.3bn (€9.5bn expected) in the third quarter. Passenger revenues were flat, while a decline in Cargo was offset by growth in IAG Loyalty and third-party maintenance.
Operating profit rose by 2% to €2.1bn. This was just shy of market expectations as a tight grip on costs wasn’t enough to overcome the slight disappointment in revenue performance.
Net debt has fallen by €1.5bn to €6.0bn over the first three quarters.
Full-year outlook remains unchanged, helped by positive bookings for the fourth quarter. Markets are forecasting full-year operating profit growth of around 11% to €4.9bn.
The ongoing €1bn share buyback programme is almost complete.
The shares fell 8.1% in early trading.
Our view
HL view to follow.
IAG key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.