IAG posts 'strong' 1H results, resumes dividends

2nd Aug 2024 07:19

(Sharecast News) - IAG described its performance during the first half of 2024 as "strong" and announced the restart of dividend payments.

Commenting on the results, IAG boss Luis Gallego, said: "We see continuing strong demand for travel in the attractive core markets in which we operate: North Atlantic, Latin America and intra-Europe."

For the three months ending on 30 June the carrier posted a 7.8% jump in revenues to reach approximately €8.3bn (UBS: €8.2bn).

Operating profits for the latest three months came in at €1.24bn or 0.8% lower, but were nevertheless ahead of UBS analyst Jarrod Castle's estimate for €1.01bn.

Profit before tax of €909m beat Castle´s estimate of €673m.

IAG also disclosed a "significant" increase in free cash flow for the half to reach €3.2bn and described its balance sheet with leverage of 1.1 times as "strong".

First half sales were ahead by 8.4% to about €14.7bn but profit before tax slipped nby 1.1% to €905m.

Overnight, the carrier had withdrawn its bid to acquire Air Europa, arguing that doing so was in the best interests of its shareholders.

The company's liquidity at the end of June stood at €9.7bn, which was up from €6.84bn one year before.

A three euro cent interim dividend was approved.

-- More to follow --