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

IAG new

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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