IAG earnings soar to £3bn however lack of dividend leaves shares grounded

Profits at British Airways proprietor IAG hit £3bn for 2023, greater than double the 12 months earlier than 

British Airways proprietor IAG has posted report annual earnings however the lack of a dividend and weak enterprise journey have didn’t woo traders.

Profits hit £3billion for 2023, greater than double the 12 months earlier than and surpassing the earlier report of £2.8billion in 2019.

It got here as the corporate, which owns airways together with Iberia and Aer Lingus, in addition to BA, mentioned passenger revenues jumped 33 per cent year-on-year to £22billion, as shoppers splash out on holidays after the pandemic.

It mentioned its airways had been 92 per cent booked for the primary quarter of the 12 months and 62 per cent booked up for the primary half. 

But the return of enterprise journey has been slower.

Overall, this meant IAG flew 95 per cent of its pre-pandemic capability final 12 months – in distinction to finances airways similar to Easyjet and Ryanair, which have each been flying above 2019 ranges. 

At BA, capability recovered to 90.1 per cent of 2019 ranges as a result of slower rebound in Asia Pacific.

In 2023 IAG airways carried 115m passengers. 

In 2019 this determine was 118m. Meanwhile, its shares are down almost 70 per cent since lockdown began in 2020.

Mark Crouch, analyst at Etoro, mentioned traders had misplaced confidence in IAG, including: ‘A reintroduction of the dividend would go some way to enticing new investors, while signalling management’s confidence that the turmoil of the pandemic is effectively and really behind them.’ 

IAG hasn’t paid a dividend since 2019, and has a debt pile of £7.9billion.