IAG, the airline consortium with Qatari capital, has beat all expectations and clocked up operating profit in the first nine months of the year of 1.2 billion euros. The initial estimate was that the group, led by Luis Gallego as CEO, would maintain earnings at around 800 million euros. So these results mean the company has raised its (operating) profitability by 50% over the forecast.
This made IAG the real star of the Spanish stock market yesterday, with a rise of 9.34% (the share price that rose the most) to just over 1.15 euros. Over 35 million shares were traded for a value of almost 43.4 million euros.
The announcement of this increase in profits should encourage the company’s shareholders who, on the 26th, will meet in Madrid for an extraordinary general meeting to approve a fair share of its fleet renewal plan.
Specifically that of its medium and short-haul fleet which, according to the documentation available to shareholders, envisages the purchase “by IAG or one of its investee companies” of 87 aircraft from the two major world manufacturers: Boeing and Airbus.
IAG will place a firm order for 50 aircraft from Boeing (25 of the B 737-8200 model and another 25 of the B-737-10) for around 5.9 billion euros (around 6 billion dollars).
In addition, 37 more Airbus “A320neos family” aircraft (in principle the A320neos and A321neos) will cost between 4.44 billion and 5.18 billion dollars, depending on the model chosen.
In other words, shareholders will give the green light on the 26th to an investment plan of around 11 billion dollars (more than 11.2 billion euros). It will be a courageous decision for the medium and long term future of the group’s companies, showing confidence in the evolution of the global economy, regardless of the current situation and the bad omens for the coming year. Obviously, with this advance of the full results that the company will present two days after its extraordinary meeting, its performance allows for a certain tranquility in the face of investments of this magnitude.
