International Consolidated Airlines (IAG) has turned its first full-year profit since the pandemic struck. The group, which owns British Airways, saw revenue almost triple to €23bn and reported an operating profit of €1.3bn for the year to 31 December 2022. This compares with a loss of €2.8bn in 2021. Management reported “strong recovery” in its core markets as Covid-19 restrictions were lifted, which “drove revenue momentum and a return to profit with significantly positive operating cash flow”.
In a display of confidence, the airlines group has acquired Spanish rival Air Europa for €400mn. This includes €200mn upon closing, with half to be paid in shares and the other half to be paid in cash. However, the company opted not to reinstate its dividend despite the bounceback. JS
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Jupiter begins slow turnaround
New chief executive Matthew Beesley seems to have taken swift action to sort out Jupiter’s idiosyncratic fund range. The preliminary results showed that around one third of the manager’s funds have been closed, or merged, in a concerted attempt to make the offering simpler, lower cost and easier to manage.
The overhaul was broadly well received, with Panmure Gordon analysts noting that Jupiter’s restructuring coincides with a general market and segment recovery that should make the CEO’s task easier. While the manager still experienced net outflows for the year of £3.5bn, the company noted that these had moderated in the second half, with a small advance into positive flow territory of £100mn. Read the full report here
