- Revenue Overview:
- Total revenue: EU8.30 billion, up 7.8% year-over-year (y/y), meeting estimates.
- Passenger revenue: EU7.41 billion, up 9.9% y/y, exceeding estimates.
- Cargo revenue: EU283 million, up 1.1% y/y, surpassing estimates.
- Other revenue: EU601 million, down 10% y/y, below estimates.
- Profit and Income:
- Adjusted operating profit: EU1.24 billion, down 0.8% y/y, beating estimates.
- Adjusted net income: EU909 million, down 9.8% y/y, surpassing estimates.
- Operations:
- Seat load factor: 86.7% vs. 86.4% y/y, slightly above estimates.
- Passengers: 31.87 million, up 6.1% y/y, slightly below estimates.
- RPK (Revenue Passenger Kilometers): 77.11 billion, up 8.4% y/y, slightly below estimates.
- ASK (Available Seat Kilometers): 88.97 billion, up 8% y/y, slightly below estimates.
- Passenger revenue per ASK: EU0.0833, up 1.7% y/y.
- Costs:
- Employee costs: EU1.50 billion, up 11% y/y, slightly below estimates.
- Fuel & oil expenses: EU2.03 billion, up 13% y/y, slightly below estimates.
- Handling, catering expense: EU1.02 billion, up 0.4% y/y, below estimates.
- Landing & en-route expense: EU645 million, up 4% y/y, below estimates.
- Engineering and other aircraft costs: EU711 million, up 14% y/y, above estimates.
- Property, IT and other costs: EU268 million, up 0.8% y/y, below estimates.
- Selling costs: EU283 million, down 5% y/y, below estimates.
- Dividend and Future Expectations:
- Gross interim dividend: EU0.030, with payment date from Sept. 9.
- Expect significant free cash flow in FY24 and a strong balance sheet.
- FY ASK growth guidance remains at 7%.
- Expected new aircraft deliveries: 20 in 2024 and 27 in 2025.
- Continued strong demand for travel, mainly in North Atlantic, Latin America, and intra-Europe.
- Non-fuel unit cost projected to increase slightly overall in 2024.
- Market Sentiment:
- 25 buy recommendations, 7 hold recommendations, and no sell recommendations.
International Consolidated Airlines Group on Smartkarma
Analyst coverage of International Consolidated Airlines Group on Smartkarma reveals contrasting sentiments from top independent analysts. Neil Glynn‘s report, “European Airlines – Bridging Flag Carrier 1Q24 and 2024 Prospects,” presents a bearish outlook on the European flag carriers’ quarterly earnings through 2024. It highlights challenges for 1Q and emphasizes the importance of forward commentary for protecting or growing earnings, especially compared to 2023. Despite a difficult 1Q, summer pricing prospects are noted as encouraging, and low-cost carriers like easyJet and Ryanair show strong earnings momentum.
In another report by Neil Glynn titled “European Airlines – FCF the Key Differentiator Between AF-KLM and IAG,” a bullish sentiment is expressed. The analysis focuses on the quarterly earnings outlook for Air France-KLM and International Consolidated Airlines Group (IAG). It suggests room for both companies to increase EBITDAR in 2024, with IAG standing out for its strong Free Cash Flow (FCF) generation. In contrast, AF-KLM is projected to struggle with positive FCF until at least 2025 due to obligations deferred during the COVID period. Lufthansa is flagged as the highest risk among peers in 2024 due to capacity restoration challenges.
A look at International Consolidated Airlines Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores have assigned International Consolidated Airlines Group a mixed outlook. While the company scored high in Growth and Momentum, indicating strong potential for expansion and positive market sentiment, its scores in Value, Resilience, and Dividend were lower. This suggests that the company may face challenges in terms of its valuation, ability to withstand economic downturns, and dividend payouts.
Despite the lower scores in certain areas, International Consolidated Airlines Group continues to provide transportation services globally, catering to both passengers and cargo. With a focus on international and domestic air travel, the company remains a key player in the transportation industry, serving a diverse customer base across different regions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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