It has been a mixed bag for the international carriers like British Airways-owner International Consolidated Airlines Group SA (LSE:IAG) in 2024.
While the holiday spending rebound is in full swing, this has primarily benefited budget airlines offering cheap fares to sunny European destinations.
easyJet Group plc recently upped its profit guidance to reflect an expected record-breaking summer, but whether IAG will follow suit when it reports next week is unclear.
Disappointing results from fellow international carrier Delta Airlines Inc served as a warning sign for the global operators earlier in July, while a recent profit warning from German carrier Lufthansa added to the sector’s anxieties.
Lufthansa attributed its lowered guidance to a fall off in passenger yields across all regions, particularly Asia.
IAG has been light on forward guidance as it prepares to report its half-year results next week.
“We expect positive long-term, sustainable demand for travel,” and we are well-positioned for the summer” the group said in May.
Shareholders will determine the veracity of this on Friday, 2 August.