British Airways-owner IAG reported on Friday its first annual profit since the pandemic and forecast earnings could jump almost 90 per cent this year as business continues to rebound.
The group agreed on Thursday to pay €400-million to Spain’s Globalia for the remaining 80 per cent of Spain-based Air Europa it did not already own, a deal aimed at expanding its position in the Latin American market. Operating profit in 2022 was just ahead of analyst expectations for €1.196-billion and overturned two years of losses when COVID-19 travel restrictions hit airlines across the world.
IAG shares were down 2 per cent soon after the market opened on Friday but have soared 30 per cent since the beginning of the year as optimism grows about the robust appetite for travel despite some gloomy economic forecasts.