In2022wesawastrongrecoveryinourcoremarketsasCOVID-19restrictionswerelifted,
which drove revenue momentum and a return to profit with a significantly positive operating cash flow
Further recovery in profit is expected in 2023, with fully operating, profit before exception alitemsexpected to be in the range of €1.8 to €2.3 billion, based on current foreign exchange rates and jet fuel forward prices. However, we are mindful of uncertainty in the macro environment and fuel and non-fuel cost inflation
Committedtogeneratinglong-terms hareholdervalueand confidential return instore -COVID-19 level so operating profit within the next few years
Luis Gallego, IAG Chief Executive Officer, said:
“2022 was a year of strong recovery, driven by sustained leisure demand and markets reopening. At this point of the year we continue to see robust forward bookings while also remaining conscious of global macro-economic uncertainties. We are transforming our businesses, with the intention of returning IAG to pre-COVID levels of profit within the next few years, through major initiatives to improve customer experience and operational performance. Our unique group structure allows us to maximise revenue and cost synergies, and invest capital to achieve strong returns, whilst continuing progress towards net zero by 2050.
“With the acquisition of Air Europa now agreed but subject to regulatory and other approvals which could take around 18 months, we are intending to welcome another leading airline to the Group. This acquisition will enable us to grow Madrid as a hub, offering a gateway to Latin America and beyond, with benefits for customers, employees and shareholders.
“I would like to thank the teams across IAG for their exceptionally hard work in addressing the challenges of ramping up the operation throughout the year.”
Significantimprovementtoourfinancialperformancewithoperatingprofitbeforeexceptionalitemsof€1,225million,an increase of €4,195 million compared to full year 2021
Restored87percentof2019capacity,measuredinavailableseatkilometres(ASKs),byquarter4and78percentinthe full year
Passengerunitrevenuewas11.0%higherthanin2019,withtheincreaseseenparticularlyinthesecondhalfof2022,with strong leisure traffic recovery and business traffic steadily improving. The premium leisure segment performed very well.
Higher-fuel unit costs, up24.1%versus2019,driven by supplier cost inflation net of transformation initiatives,capacity levels still below 2019 and foreign exchange
Fuelunitcostwasup30.2%versus2019, negatively impacted by significant rise in commodity prices for jet fuel,following the Russian invasion of Ukraine in February 2022, partially offset by the benefit of our hedging policy
Invested €3.9billion to make important improvements in fleet,customer offerings,ITinfrastructureandsustainability
Reductioninnetdebtto€10.4billion,drivenbyoperatingprofitandsignificantworkingcapitalinflows
Liquiditycontinuedtostrengthento€14.0billionatDecember31,2022,from€12.0billionattheendof2021
