Iberia has this week posted a very strong €940m profit, as the airline continues to grow to new levels.
The Spanish carrier, which is under the IAG umbrella, has increased their financial standing considerably.
Without further ado, let’s get into it…
Strong Profitability for Iberia At Present…
For the full-year 2023, Iberia posted an operating profit of €940m profit, from revenues of nearly €7bn.
This is a major improvement compared to 2022.
In 2022, the airline recorded €1.4bn in revenues, which resulted in a profit of €396m overall.
Like with the rest of the airlines in the IAG umbrella, costs have gone up, which are as follows:
- Fuel, oil costs & emissions charges – From €183m to €1.5bn.
- Employee Costs – From €123m to €1.2bn.
- Supplier Costs – From €543m to €2.8bn.
- Ownership Costs – From €47m to €411m.
With this in mind, Iberia is very profitable off the back of the first full post-pandemic period.
Highlights of 2023…
It remains clear why profitability has increased at Iberia. More flights.
Even back in October, it was clear that the number of flights had increased, based on analysis noted by AviationSource.
Off the back of 2022, the Spanish carrier was given the accolade of Most On-Time Airline in Europe.
Such successes has seen them be able to take advantage of certain opportunities within the market.
Also, one of the more notable milestones was Iberia launching flights to Doha from Madrid.
Furthermore, such successes are expected to continue in Latin America and the U.S.
Frequencies to those areas of the world are due to increase in time for the Summer season.
With plenty more expansion expected in 2024, it is expected that such profitability will increase.
Overall…
In conclusion, Iberia had a very strong 2023, with plenty more opportunities to be seized in 2024.
Furthermore, all eyes will be on how the airline performs out of Madrid, as well as what additional growth plans are on the table.
But for now, all we can do is sit and wait to see what happens in the Summer season, the airline’s busiest period.
From there, an assessment can be made in terms of how things will look by the end of 2024.
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