International Airlines Group builds momentum: FY2013 guidance raise makes IAG a standout

In 3Q2013, IAG continued the turnaround in its operating result that began in 2Q2013. All three of its main brands - British Airways, Iberia and Vueling - saw an increase in their result from the same quarter of 2012. The improvement was mainly driven by healthy unit revenues, although these were diluted by currency effects, and the addition of LCC Vueling in the full quarter for the first time.

It seems that IAG's prediction that Iberia's restructuring programme would start to bear fruit in the second half of the year is being proven correct.

Moreover, new FY2013 guidance, for an operating result of around EUR740 million, is ahead of IAG's previous target, even allowing for the Vueling acquisition. After its 2Q2013 results, we asked if that was a turning point for IAG? At the moment, it would seem that the answer is yes.