International Consolidated Airlines lifts guidance after swinging to profit

By Anthony O. Goriainoff

International Consolidated Airlines Group said Friday it beat consensus as it reported a swing to operating profit for the first quarter, and raised its guidance for the year.

The London and Madrid-listed company -- which houses British Airways, Iberia, and Vueling among others--said that operating profit was 9 million euros ($9.9 million) compared with an operating loss of EUR718 million for the first quarter of 2022. Three analysts polled by FactSet had an adjusted operating loss consensus of EUR156.6 million.

Operating profit before exceptional items--the company's preferred metric which strips out exceptional and other one-off items--was EUR9 million. This is compared with a loss of EUR741 million the year before.

Revenue was EUR5.89 billion compared with EUR3.44 billion the year prior, and consensus of EUR5.86 billion taken from FactSet and based on six analysts' forecasts.

The FTSE 100 company said it expected 2023 adjusted operating profit to be higher than the top end of previous guidance which was in the EUR1.8 billion to EUR2.3 billion range. Net debt at Dec. 31 is expected to be better than previous guidance of materially flat year-on-year and "to be down in line with our profit outperformance."

IAG said Fernando Candela Perez has been appointed Iberia's chairman and chief executive until the end of the year effective July after Javier Sanchez-Prieto's decision to leave the group.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

-Anthony O. Goriainoff

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05-05-23 0342ET

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