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IAG: passenger revenues grow in 2Q23 to 121% of 2019 levels (+6% quarter-on-quarter)

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Posted By: The Corner 1st August 2023

British Airways and Iberia (IAG) aircraft at Barajas airport
Morgan Stanley| IAG’s passenger revenue (PRASK) accelerated sharply in 2Q23 to 121% of 2019 levels (+6% q/q), with management indicating that the bookings they have seen so far have shown no signs of weakness, implying that this pace can be sustained. With 80% of the 323 already sold, Conor Dwyer (analyst) has revised its estimates of PRASK to match it with management’s indications (+121% in 3Q23, +6% vs. its previous estimate), although it still expects some normalisation in 4Q23 (to 118% of 2019 levels), given lower visibility and the weight of corporate demand (where the recovery remains relatively slow) in total demand in 4Q. With this, Conor raises its price target to €2.25 and maintains EW.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.