In a recent trading update covering last year, the company reported an operating profit of €1.2 billion compared with a loss of €2.7 billion in 2021. The increase came after 87% of pre-pandemic capacity was restored.
The group expects the recovery to continue in 2023, with full year operating profit predicted to be in the range of €1.8 to €2.3 billion, based on current foreign exchange rates and expected jet fuel prices.
The strong recovery in demand and traffic was reflected in IAG’s passenger load factor, which reached 81.8% for the year, down just 2.8% on 2019.
"At this point of the year, we continue to see robust forward-bookings, while also remaining conscious of global macro-economic uncertainties," the group said.
Luis Gallego, IAG chief executive, said the company is "transforming" its businesses with the intention of returning to pre-Covid levels of profit within the next few years.
"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," he added.
"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."
Capacity operated out of Heathrow airport was lower than the group originally planned at the start of the year, due to BA’s capacity being capped, limited access to South Asia and the impact of the Omicron variant in January and February.
Gatwick subsidiary, BA Euroflyer, operated to 35 new destinations in the summer, flying under the British Airways brand.
Aer Lingus, meanwhile, was able to restore the majority of its transatlantic services and operated three transatlantic services from its new Manchester airport base.
