Shares of British Airways owner International Consolidated Airlines Group, S.A. (GB:IAG) are flying higher today after the carrier reported a 15.4% year-over-year growth in Q3 operating profit. The airlines’ Q3 revenue rose 8% to €9.3 billion, beating the €9.1 billion estimate. IAG stock gained almost 7% as of writing.
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IAG is a parent company of major airlines in Ireland, Spain, and the UK, with British Airways as its primary revenue driver.
IAG Enjoys Better Results on Robust Travel Demand
IAG highlighted strong travel demand in its Q3 results and expects another solid performance in the fourth quarter.
The airlines carried 34.7 million passengers during the period, marking a 4.5% rise. The load factor, which indicates how efficiently an airline fills its planes, improved to 89.9% in Q3 from 88.9% in the previous year.
Additionally, IAG announced a share buyback program for €350 million expected to start next week.
Jefferies Stays Bullish on IAG Stock
Following the results, analyst Jaina Mistry from Jefferies confirmed a Buy rating on the stock today. Mistry predicts a growth of 15.16% in the share price.
Mistry believes that the favourable performance will drive share price growth on the back of stable demand and significant consensus upgrades. She also noted that IAG’s margins are now above pre-Covid levels and have the potential for further growth, mainly driven by the rebound in long-haul capacity and the results of self-improvement initiatives by the airlines.
Is IAG a Good Stock to Buy?
IAG stock has a Strong Buy rating on TipRanks, backed by nine Buys and one Hold recommendation. The IAG share price forecast is 251.88p, which is 8.3% higher than the current trading level.
