IAG Group Publishes Third Quarter Financial Results for 2022 and Orders New Aircraft From Airbus to Boeing – AirlineGeeks.com
By Vincenzo Claudio Piscopo
IAG Group Publishes Third Quarter Financial Results for 2022 and Orders New Aircraft From Airbus to Boeing
The International Airlines Group (IAG) Anglo-Spanish multinational holding company formed on January 21, 2011, from the merger of the flag carriers of the United Kingdom and Spain, British Airways and Iberia, published its financial results for the third quarter of 2022 a few days ago. As of September 30, 2022, the Group had total liquidity of 13,488 million euros, including 9,260 million euros in interest-bearing deposits.
In the first nine months of 2022, IAG’s load factor reached 81.3%, increasing once again during the period, reaching 72.2% in the first quarter, 81.8% in the second quarter, and 87.0% in the third quarter, only 0.7 points lower than in the third quarter of 2019.
IAG has been successful in raising financing since the COVID-19 outbreak, having financed all aircraft deliveries in 2020 and 2021, and has continued to successfully finance aircraft in the following nine months through September 30, 2022, continuing to secure aircraft financing with long-term agreements.
Average commodity fuel prices in the nine months to September 30, 2022, were significantly higher than in the previous period, with jet fuel prices nearly doubling from the previous year.
The Group’s financial performance was affected by fluctuations in exchange rates, mainly of the U.S. dollar, euro, and pound sterling. The average exchange rate for the first nine months of 2022 saw the U.S. dollar strengthen by 10% against the euro, and 7% against the pound, compared with the average for the first nine months of 2021. The net impact of transactions and foreign exchange translation for the Group in the nine months was negative €316 million (negative €90 million in the first quarter, €106 million in the second quarter, and €120 million in the third quarter).
On October 26, IAG shareholders approved the purchase of 50 Boeing 737 and 37 Airbus A320neo aircraft. These aircraft, scheduled for delivery between 2023 and 2028, will replace the current Airbus A320ceo family aircraft.
Boeing on its website announced that 50 Boeing 737-8-200s and 737-10s have been ordered, with options for a hundred more. The order had been firm since November 2021. The Boeing 737-10 is the largest model in the 737 family and can accommodate up to 230 passengers in a single-class configuration with a 3,300-mile range. The Boeing 737-8-200, on the other hand, can be configured to accommodate up to 200 passengers.
The next day, on Oct. 27, Airbus posted the news on its website that it had placed an order for 37 A320neo aircraft, following shareholder approval. The latest order follows previous agreements for 22 A320neo Families (17 A320neo, 5 A321neo) announced in March and June 2022, bringing the year’s total to 59 aircraft.
The two Boeing 737 and Airbus A320 families have the latest technologies. The 737 has the latest generation CFM International LEAP-1B engines offering the highest efficiency ever achieved on a Boeing 737. Airbus A320neo aircraft as well have next-generation engines and Sharklets on board, a solution that provides fuel savings of at least 20%. As stated by Airbus itself, with more than 8,500 orders from more than 130 customers, the A320neo Family is the world’s most popular aircraft.