BA-owner IAG returns to profit in 2022

LONDON, Feb 24 (Reuters) - British Airways-owner IAG (ICAG.L) forecast 2023 profit could jump almost 90% after its financial performance improved substantially last year and it agreed a deal to buy all of Spain-based Air Europa.

For 2023, the airline group, which also owns Iberia, Vueling and Aer Lingus, forecast operating profit in the range of 1.8 billion euros ($1.91 billion) to 2.3 billion euros, compared to the 1.22 billion euros it made last year.

That result came in ahead of analyst expectations and represented an improvement of 4 billion euros from the previous year when COVID-19 travel restrictions made airlines across the world loss-making.

IAG agreed on Thursday to pay 400 million euros ($423.84 million) to Spain's Globalia for the remaining 80% of Air Europa it did not already own, a deal aimed at expanding its position in the Latin American market.

Looking ahead, chief executive Luis Gallego said IAG was seeing robust forward bookings, although it remained conscious of the global macro-economic uncertainties.

"We are transforming our businesses, with the intention of returning IAG to pre-COVID levels of profit within the next few years, through major initiatives to improve customer experience and operational performance," he said.

($1 = 0.9439 euros)

Reporting by Joanna Plucinska; editing by Sarah Young

Our Standards: The Thomson Reuters Trust Principles.